Panic withdrawals hit some savings and loans companies

Some savings and loans companies in the country have been hit by panic withdrawals.

The development has already made it difficult for these companies to meet customer demands.

Read: Some local banks hit by panic withdrawals

According to some of the companies, the situation has been compounded by the fact that most of their clients are not paying back their loans on time.

Industry Development

Some have linked the latest development to the recent liquidation of the five local banks, which has led to some believing most of the local financial institutions are not in good position.

Some are also linking it to reports that some depositors are having problems in withdrawing their funds from microfinance companies, with experts describing it as the “contagion” effect.

Association of savings and loans companies on the development

The Executive Secretary of the Association of Savings and Loans Companies, Tweneboah Kodua Boakye, for instance, has maintained that the situation is very bad and it is putting a lot of pressure on their operations.

Read: Consolidated Bank blocks withdrawals from defunct Beige Bank accounts

He said, “When you talk to some of these depositors, they would just tell you, we really don’t need the money, but are just not sure about your future” hence the withdrawal, he added.

He added that depositors should understand that everything is safe and the reforms being undertaking by the Bank of Ghana would ensure that the entire system is safe.

Government on panic withdrawal

The government has also maintained that it would soon be rolling out some additional measures to support what the Bank of Ghana is doing to deal with the situation.

Source: myjoyonline.com