‘Create innovative products for informal sector’

The president of the Institute of Chartered Accountants Ghana (ICAG), Professor K.B. Omane-Antwi, has charged local banks to move out of their comfort zones and create innovative products for the informal sector to prevent dubious microfinance institutions from misapplying funds of unsuspecting customers.

The Bank of Ghana has in recent times urged the public to avoid microfinance institutions that promise huge returns on deposits, and rather do business with traditional banks that quote realistic returns.

Launch

At the launch of the Chartered Institute of Credit Management (CICM) Ghana, in Accra, Professor Omane-Antwi, who is also the Chairman of the CICM-Ghana, stated that the central bank could not be solely blamed for the debacle that hit the microfinance sector since banks had not provided creative products for the informal sector.

“I always say the easiest job to do in Ghana today is to be a banker. They sit there for people to bring their money and they start taking commission without thinking of strategic issues,” Professor Omane-Antwi said.

According to him, traders and business owners in the informal sector had a lot of funds that the banks could mobilise to lend out as credit at a low cost.

“Look at the amount of money that got misappropriated in Sunyani and all those areas; it is an indication that the informal sector has a lot of money. Those people will go to places where they are lured to gain huge returns. The banks must develop better products and educate the people to accept them,” he said.

CICM-Ghana

Professor Omane-Antwi maintained that banks must intensify financial literacy in the informal sector since stakeholders in the sector were discerning and would invest in products that brought reasonable returns.

Delivering a welcome address, the Executive Secretary of the CICM–Ghana, Mr Agyepong Amo, explained that the institute was a professional body created in accordance with the Professional Bodies Registration Act, 1973 .

Touching on the mandate of the institute, Mr Amo stated that the CICM-Ghana provided credit management resources, education and certification to its members and was the only professional body that granted official designations to credit management professionals in Ghana.