The Bank of Ghana (BoG) has instituted reforms to create a more transparent, predictable and inclusive credit market that supports the growth of enterprises, the Second Deputy Governor, Matilda Asante-Asiedu, has said.
She said understanding the Borrowers and Lenders Act, 2020 (Act 1052) and the operations of the Collateral Registry was now critical for building a transparent, predictable and inclusive credit environment for the country’s private sector.
Addressing a sensitisation programme on the Act in Accra yesterday, Mrs Asante-Asiedu said that the central bank’s ongoing reforms were targeted at removing long-standing structural barriers that had limited SMEs’ access to credit.
Participants included members of the Ghana National Chamber of Commerce and Industry (GNCCI).
Constraints
The Deputy Governor said the country’s credit market had historically grappled with information asymmetry, limited collateral options and weak enforcement mechanisms.
She said those constraints elevated borrowing costs and stifled innovation, business expansion and job creation.
Mrs Asante-Asiedu said reforms such as the Borrowers and Lenders Act and the strengthened Collateral Registry were transforming the system by widening acceptable collateral and also enhancing legal clarity.
“The 2020 Act strengthened the rules on credit agreements, expanded the types of movable and immovable assets that qualify as collateral, and reinforced borrowers’ rights to fair treatment and full disclosure,” she added.
Mrs Asante-Asiedu said the Collateral Registry had made significant progress, with registered borrowers increasing from 27 in 2010 to over 372,900 in 2024.
Also, more than 1.3 million borrowers had received credit backed by movable collateral during the period.
“But for me, what is even more heart-warming is that women and women-owned businesses account for 77 per cent of this growth.
“Now this is a clear sign of progress in financial inclusion, access to opportunity and social equity in the marketplace,” she said, urging transparency and responsible borrowing.
Financial literacy
The Head of the Collateral Registry Department at the BoG, Fred Asiamah-Koranteng, said the central bank had invested considerable resources in promoting financial literacy, transparency, and borrower protection in the nation’s credit market.
“Our doors remain open for continued dialogue because this programme is not a lecture—it is a partnership with all stakeholders,” he said.
Mr Asiamah-Koranteng added that the initiative was aimed at deepening public understanding of the Collateral Registry Act to ensure borrowers and businesses appreciate its direct benefits.
Partnerships
The President of GNCCI, Stephane Miezan, said partnerships were the foundation for creating a credit environment where transparency became the norm rather than the exception.
“What truly matters today is the partnership we continue to strengthen because without the Bank of Ghana listening to our concerns, without the collateral registry opening its doors to help us to understand these systems, and without the business community showing up with honesty we cannot build the trust, unity and shared commitment needed to transform the nation’s credit landscape,” he said.
