BoG cautions informal sector against unlicensed financial institutions

The Bank of Ghana (BoG) has cautioned operators in the informal sector to only engage with licensed financial institutions to safeguard themselves against fraud and deceptive financial schemes. Albert Fynn, a Deputy Manager in the Financial Stability Department of the BoG, warned traders and small business owners to exercise caution when seeking loans and other financial services to prevent becoming victims of fraudulent lenders.

Fynn emphasized in an interview with The Ghanaian Times that many traders and small business owners rely on loans to sustain their businesses and stressed the importance of these entrepreneurs having practical knowledge of what to consider before borrowing and how to avoid falling into debt or becoming victims of fraudulent lending schemes.

The BoG conducted town hall meetings for informal sector operators in Sefwi Wiawso and the Juaboso corridor of the Western North Region, where Fynn made these recommendations.