Regulating the Financial Sector

This work examined the institutional framework of susu, as well as whether or not formal prudential regulation should be extended to susu in Ghana. Susu is an informal savings mechanism where individual collectors pick up daily deposits from savers and return the accumulated savings, minus a day's deposit, as fees upon the expiration of the agreed savings period. The study employed qualitative methods at all phases of the research process. The study population comprised of informal and formal financial sector participants. Unstructured interviews and non-participant observation was used to collect information from two different economic groups in the informal sector in Greater Accra, Central and Eastern Regions of Ghana. Semi structured, face-to-face interviews was also used to obtain information from the formal sector, composed of judges, lawyers, court officials and Central Bank officials in Accra. There appeared to be no economic or other compelling reason justifying the extension of formal regulation of a prudential nature to susu. It is recommended that consumer protection measures combined with informal rules be adopted to protect savers interests and regulate susu.