An investigation of the financial monitoring policies for microfinance institutions in Ghana

  • Received October 5, 2017;
    Accepted November 21, 2017;
    Published December 20, 2017
  • Author(s)
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  • Article Info
    Volume 14 2017, Issue #4, pp. 90-104
  • Cited by
    2 articles

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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

The need to regulate microfinance institutions (MFIs) was advocated and researched yet lacks purposeful in-depth exploring studies of the formulation process of financial monitoring policies, their implementation and accompanying challenges. Consequently, this study contributes by reviewing the specific financial policies for microfinance in Ghana and assesses factors mitigating effective implementation of such policies. It also introduces implementation theory into the MF research arena, thus shifting MF research focus.
The study revealed that policies formulated for MFIs in Ghana and elsewhere are skewed and policy implementation, monitoring and supervision found to be less effective. The results further identified inadequate support structures and large unlicensed profit-oriented informal microfinance operations in Ghana as major obstacles to efficient implementation of microfinance policies. This paper therefore recommends the creation of a semi-autonomous institution, the National Microfinance Oversight Authority, to license, regulate and supervise the informal microfinance institutions in Ghana.

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    • Figure 1. Policy implementation process model
    • Figure 2. FMP model for MFIs
    • Figure 3. Availability of FMPs for MFIs
    • Figure 4. Level of cooperation and dialogue
    • Table 1. KMO and Bartlett’s test