Abstract

The study scrutinizes the position of microfinance institutions in Ghana by focusing on Techiman municipality. The study used a sample size of 600 respondents and adopted recursive approach. The descriptive analysis took into account bar-graphs and tables. The quantitative analysis used probit regression model to analyze and assessed the question of whether the role of the Microfinance institutions should be considered as part of financial inclusion and intermediation in the financial market. The study found out that microfinance do not do very well or good as compared to the banks in the financial market in terms of risk sharing. But it ascertains a good performance towards risk sharing or assets transformation in terms of its security of reliability. Also, the study found out that microfinance has improved upon the financial life’s of the inhabitants since majority of the respondents were of the notion that microfinance has impacted positively on the financial life of the inhabitants in the community. Again the study, found out that the microfinance institutions have brought about a good growth to the financial market since about 49.13% of the respondents rated the growth performance by the MFIs to the financial markets as good. The study recommended that stakeholders should enact policies and regulations to check the operational activities of the microfinance institutions for sustainability