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| Impact Of Financial Regulations On Microfinance Institutions Sustainability In Ghana |
Dr. Ramatu Ussif, Assoc. Prof. Dr. Murat Ertugrul
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Abstract:
This article examines the "impact of financial regulations on the microfinance institutions sustainability in Ghana". The purpose is to investigate financial regulations effects on sustainability of the institutions. The study used primary and secondary data and the primary data was gathered with the help of a structured questionnaires administered to the regulators, management, policymakers and to the customers. The data was analyzed using Statistical Packages for Social Sciences and Microsoft Excel. The results revealed that regulations and policies have negative and positive impacts on the sector. They contributed immensely towards the institutions' development through training and capacity building, regulation and supervision, protecting customers/depositors, ensuring financial soundness and financial inclusion. Again, the results show that the factors that determine microfinance sustainability are positively and significantly driven by minimum capital requirement, regulators activities, credit default, government policies, and capital structure. Furthermore, the results demonstrated microfinance challenges as not complying with regulatory guidelines, improper risk management, poor technology, and lack of Government support. While examines the challenges facing financial regulations as cost of regulations, political influence, inadequate staff, and poor information dissemination. We recommend regulators, policymakers, and all key stakeholders to support microfinance institutions in the country for long term sustainability.
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