Rural and micro finance regulation in Ghana: implications for development and performance of the industry

Rural and Micro Finance Regulation in Ghana: Implications for Development and Performance of the Industry Africa Region Working Paper Series No. 49 June 2003 Abstract L egislation and regulations governing rural and micro Liberalization of financial policies in the late 1980s has finance institutions (RMFIs) in Ghana have evolved with enabled RMFIs to develop with relatively little interference, the market, both opening up possibilities for new types of and without a clearly articulated national strategy. institutions and tightening up to restrain excessive entry and Nevertheless, continued high inflation and interest rates weak performance in the face of inadequate supervision (particularly on Treasury Bills) has limited the incentive for capacity. The result