Volume: 3 Issue 2 [February 2020]

Article:IMPACT OF REGULATIONS AND POLICIES ON MICROFINANCE SECTOR DEVELOPMENT IN GHANA

Author: Ramatu Ussif, Murat Ertugrul

Volume: 3, Issue 2; February-2020 ;

DOI: Nor. Am. Aca. Res. 2020 : 3(2) : 509-542 : https://doi.org/10.5281/zenodo.3692114

Abstract: This article looks at whether financial regulations and Government policies have an impact on microfinance institutions operations in Ghana. It also looks at contributions that regulations and policies have on microfinance sector development in the country. The methodology for this paper is purely qualitative. The needed information was gathered from primary & secondary sources. The primary data source used face to face interviews, telephonic and through emails conducted with regulators, policymakers and microfinance institutions managers, using interview guide and focus group discussion guide. The secondary source was through literature reviews, books, journals, and the internet. The study revealed that financial regulations and government policies have contributed immensely to microfinance sector development through, training & capacity building, checks and balances, protecting customers and depositors, financial soundness and financial inclusion. However, despite the contribution of regulations and the policies to the sub-sector, the result of the study also identified poor regulations, lack of proper decentralization, lack of knowledge and weakness of regulators as problems with financial regulation. Furthermore, it also found out that, the policies formulated are weak and the implementation, monitoring, and supervision of the institutions is insufficient and ineffective. This article, therefore, recommends that Apex bodies should be involved in monitoring and supervision, minimum capital requirements should be made moderate, powers should be decentralized to the regional level for the effective functioning of regulations & policies in the country.

Comments