Dr. Zakari Mumuni (M) with some staff
The Bank of Ghana (BoG) has assured the public of its commitment to continuosly invest in advanced technologies including artificial intelligence, to enhance security and strengthen collateral Registry.
Speaking at the 15th anniversary of the establishment of the Collateral Registry on behalf of the Governor of the Bank of Ghana (BoG), the first Deputy Governor, Dr. Zakari Mumuni said BOG is also undertaking policy and regulatory reforms to make the legal framework agile and responsive to the evolving credit landscape.
He stated, “we will deepen partnerships with institutions such as the Driver and Vehicle Licensing Authority (DVLA), the Office of the Registrar of Companies (ORC), the Lands Commission, the International Finance Corporation (IFC), and the Swiss State Secretariat for Economic Affairs (SECO).
According to him, the collaborations will introduce global best practices and technical support to drive further impact.
He said it was important for Ghanaians to acknowledge and recognise the role of Collateral Registry, in transforming credit market and supporting financial inclusion, especially for small and medium-sized enterprises (SMEs) in Ghana.
The Collateral Registry was established under the Borrowers and Lenders Act, 2008 (Act 773) and later repealed and replaced with the 2020 Act (Act 1052) in response to a fragmented system for secured credit, where multiple laws coexisted without offering a clear or efficient path for lenders and borrowers.
He said before its establishment in February 2010, lending was hampered by information, limited data on collateral, and a preference for immovable assets which increased risk for lenders and restricted credit access for businesses without land or buildings to pledge.
Dr. Mumuni however mentioned that the Collateral Registry addressed the challenges by creating a centralised platform for the registration of both movable and immovable assets, offering lenders a trusted and transparent system to assess credit risk and protect their security interests
“The ability to register and search collateral has improved credit risk management. Today, financial institutions make better-informed lending decisions, and borrowers benefit from more predictable and efficient processes,” he added.
By Ebenezer K. Amponsah