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| Challenges Facing Microfinance Institutions and Financial Regulations in Ghana |
Dr. Ramatu Ussif , Associate. Prof. Dr. Murat Ertugrul, Prof. Dr. Metin Coskun, Associate. Prof. Dr. Ismail Onur Baycan
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Abstract:
This article analyzes the challenges facing microfinance institutions in their operations and financial regulations in about microfinance institutions in Ghana. The regulators, policymakers, and managers of the institutions were conveniently and purposively selected and interviewed with an interview guide, and the data was analyzed qualitatively. The article has outlined some challenges facing microfinance as microfinance institutions not complying with regulatory principles, poor management skills, and credit defaults from customers, high operational cost, poor credit monitoring, and lack of Government support. Some challenges facing regulations are examined such as cost of regulations, inadequate knowledge, inadequate staff, political influence, poor information dissemination, and uncertainties. However, despite the challenges, microfinance chalked the following prospects: unserved market, entrepreneurs' interest, increasing government interest, and economic growth. We recommend that there should be proper monitoring and risk management, autonomous regulations, government support, and adequate training/education of employees/staff to facethe challenges and make microfinance institutions and financial regulations more effective.
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