Book contents
- Frontmatter
- Contents
- List of Contributors
- List of Acronyms
- PART ONE OVERVIEW
- PART TWO MACROECONOMY, TRADE & FINANCE
- 4 Persistent Public Sector Deficits & Macroeconomic Instability in Ghana
- 5 Effects of Exchange-Rate Volatility & Changes in Macroeconomic Fundamentals on Economic Growth in Ghana
- 6 Ghana's Exchange-Rate Reform & Its Impact on Balance of Trade
- 7 Export Performance & Investment Behaviour of Firms in Ghana
- 8 Household Savings in Ghana: Does Policy Matter?
- 9 Banking Competition & Efficiency in Ghana
- 10 Rural & Microfinance Regulation in Ghana: Implications for Development of the Industry
- PART THREE POVERTY, EDUCATION & HEALTH
- Index
10 - Rural & Microfinance Regulation in Ghana: Implications for Development of the Industry
from PART TWO - MACROECONOMY, TRADE & FINANCE
Published online by Cambridge University Press: 05 February 2013
- Frontmatter
- Contents
- List of Contributors
- List of Acronyms
- PART ONE OVERVIEW
- PART TWO MACROECONOMY, TRADE & FINANCE
- 4 Persistent Public Sector Deficits & Macroeconomic Instability in Ghana
- 5 Effects of Exchange-Rate Volatility & Changes in Macroeconomic Fundamentals on Economic Growth in Ghana
- 6 Ghana's Exchange-Rate Reform & Its Impact on Balance of Trade
- 7 Export Performance & Investment Behaviour of Firms in Ghana
- 8 Household Savings in Ghana: Does Policy Matter?
- 9 Banking Competition & Efficiency in Ghana
- 10 Rural & Microfinance Regulation in Ghana: Implications for Development of the Industry
- PART THREE POVERTY, EDUCATION & HEALTH
- Index
Summary
This study assesses how the policy, legal and regulatory framework has affected, and been influenced by, the development of rural and microfinance institutions (RMFIs) in Ghana, especially in terms of the range of institutions and products available, and their financial performance and outreach. The potential of microfinance to reach large numbers of the poor is well understood (Robinson, 2001). Questions for regulation are the extent to which a flexible regulatory environment can encourage innovation and a diversity of RMFIs and products serving different market niches not reached by commercial banks, and at what point special legislation may be needed, whether to facilitate the commercialization and sustainability of the rural and microfinance (RMF) industry or to protect deposits and ensure the stability of the financial system.
Ghana is particularly interesting because its tiered system of different laws and regulations for different types of institutions has evolved largely in response to local conditions, and because so many of its institutions are savings-based. The resulting system resembles the tiered approach recommended by the World Bank's 1999 study of microfinance regulation (Van Greuning et al., 1999) and more recently adopted by Uganda. While Ghana's approach has fostered a wide range of both formal and informal RMFIs, it has not as yet been so successful in achieving strong financial performance, significant scale, and true commercialization of microfinance.
- Type
- Chapter
- Information
- Economy of GhanaAnalytical Perspectives on Stability, Growth and Poverty, pp. 195 - 221Publisher: Boydell & BrewerPrint publication year: 2008