Teachers Co-operative Credit Union calls for non-bank law

The Dormaa Teachers Co-operative Credit Union, a registered savings and loan society for government employees in Dormaa, has appealed to the government to consider the immediate passing of the non-bank financial institutions bill into law.

The union contended that the absence of a law to regulate the activities of credit unions had given birth to quack savings and loan groups some of who had engaged in fraudulent practices and the robbing of innocent members of huge sums of money.

Addressing a press conference at Dormaa-Ahenkro the union’s Board Chairman, Mr Kwasi Siaw said “when the bill becomes law it will not only provide the needed congenial atmosphere for legitimate credit unions to operate but will also hedge members of such unions against fraud and unnecessary fear to save and benefit from loan facilities”.

He noted that credit unions as non-profit making organisations required the support of government in making sure that savings became a household word among Ghanaians.

The union indicated that credit unions had major contributions to make towards the overall growth of the nation’s financial sector and should therefore not be left to operate in a vacuum by taking laws into their hands and deceiving existing and prospective small and medium-scale entrepreneurs in the country.

Source: GNA