The Bank of Ghana has called on savings and loans companies in the country to beef up their capital levels and improve their risk management in compliance with the Banking Act.

They have also been charged to take urgent steps to improve their capitalisation to meet the minimum required level of Gh¢7 million by the close of next year.

A Deputy Governor of the Central Bank, Mr Millison Narh, made the call in a speech read on his behalf at the launch of the 5th anniversary celebration of First National Savings and Loans Company Limited in Accra Tuesday.

The call comes in the wake of growing number of savings and loans companies in the country, some of which have been found to be either non-existent or operating with very little capital.

Some have also been found to be operating and introducing new products and services without recourse to the central bank.

Against this background and more, Mr Narh reminded them that, “savings and loans companies must ensure that opening, re-location and closure of branches and the launching of new products and services are duly approved by the Bank of Ghana”.

Mr Narh said, “It was regrettable that some savings and loans companies operate without strict adherence to the Banking Act 2004, Act 673 and bank of Ghana’s directives”.

The Deputy Governor used the opportunity to draw the attention of the savings and loans companies to what he described as the “opportunities created by collaboration with telecommunication companies and financial services providers in the area of mobile money.

“There are prospects for you to reach the unbanked and under-banked segments of the population through targeted harnessing of ICT and I urge you to explore opportunities being offered by mobile money platforms”, he advised.

Mr Narh praised the management and board of First Capital for their role in deepening financial intermediation in the Ghanaian economy and expressed the hope that the company would continue to carve a niche for itself in the years ahead, guided by the regulatory framework in place.

The Chairman of the company, Dr Papa Kwesi Nduom, dropped hints about the intention of First national to upgrade its licence to that of a universal bank.

“We want to become the banker of the ordinary people, rural community dwellers, micro and small enterprises and workers of all types”, he said.

Dr Nduom said it is the strategy of the company not to grow its customers only to lose them to bigger banks and noted that it was for that reason among others that First National was challenging itself to implement the right technology, develop high quality human capital and “open our books to admit new shareholders so that we can raise the capital needed to become a universal bank”.

Presently, First National already has presence in all the 10 regions of the country as the only company of its kind to have achieved that feat.

The company has mobilised, since its inception, Gh¢90 million in the form of deposits from a customer base of more than 130,000, one of quarter of which have come back to the company to request for loans.

Dr Nduom gave the assurance that First National, which is part of the Groupe Nduom, “is not a fly by night operations; We have come to stay”.

The Director-General of the Securities and Exchange Commission (SEC), Mr Adu Anane Antwi, who chaired the function, asked savings and loans companies and other players in the industry to learn to be complaint with their regulators at all times.

According to him, it was only when such is done that the regulator would focus on its core duties and not spend time policing the players.

He advised the board of First National to consider using the Ghana Stock Exchange to raise capital in its quest to acquire a universal licence.