The BoG undertook a nationwide exercise in 2014 to sanitise the operations of microfinance companies after which it announced it would make public the names of 108 MFIs that were operating illegally.
The move by the BoG was part of measures to check the rising spate of MFIs absconding with depositors’ funds.
However, GHAMFIN, which is the umbrella body of microfinance companies operating in the country believe the public also have an important role to play.
Speaking at the association’s 7th Annual General Meeting on the theme: the next step towards transparency: implementation and monitoring of the unified code of conduct, Chairman of GHAMFIN Collins Amponsah-Mensah, said the propagation of unrealistic interest rate is worrying.
He indicated It is abnormal and unsustainable, the propagation of unlicensed institutions which promises rates between 300 percent.
Chairman of the Association, Collins Amponsah-Mensah said when the depositor falls for 300 percent interest; it is no longer an investment it is rather gabbling.
“A lot of people are driven by greed and that is the truth. If an institution comes to you and says I will give you 300 percent interest and you fall for that, you are no longer making an investment, you are now gabbling and in gabbling; you either win or lose”.
Mr. Amponsah-Mensah said the industry has been invaded by self-seeking and inexperienced agents who exploit the poor thus they are set to adopt a unified code of conduct as part of several measures to inject sanity into an industry that has seen several players collapse.
He urged the general public to check online, Bank of Ghana, District Assemblies and even the police for accredited firms in order not to fall prey to the criminalities of unlicensed firms.