Implications of Microfinance for Efficient Finance Systems in Ghana. BY ATTA GEORGE PEPRAH Most Microfinance (MFIs) in Ghana are deposit-taking institutions. However, deposit-taking is not without risk. MFIs must be able to lend profitably enough to pay for and protect the deposits they mobilize. They must also be able to cope with temporary downturns when these arise. Failure to do so can quickly harm financial stability and deprive small depositors of their deposits. For this reason, Ghana has subjected their banking sectors including the MFIs to prudential regulation. There are several players in the microfinance sub-sector. Rural and Community Banks (RCBs) constitute the largest players in the rural formal banking sector. RCBs are unit banks owned by community members and stand out as the largest financial players in terms of geographical coverage According to ARB Apex Bank (2013) as at 2013 there were 143 RCBs with 546 branches across the country with more than 1.2 mill...












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