BoG expands the list of institutions to participate in the Credit Reporting System


The Bank of Ghana has expanded the list of institutions required to participate in the credit assessment system established under the Credit Assessment Act 2007 (Law 726).

This is in accordance with the Credit Reporting Regulations, 2020 (LI 2394).

Institutions are telecommunications companies, utility companies, retailers, mobile money operators, and financial technology (FinTech) companies. Others are government institutions that provide credit to micro, small and medium-sized enterprises, institutions that provide identification documents, and entities that provide goods and services on a post-paid or phased basis.

The others are student loan programs provided by private or government agencies and other entities that have relevant data and information in line with the authorized purposes of the credit bureaus.

This move is expected to help mitigate defaults and therefore reduce non-performing loans.

In accordance with Articles 24 and 26 of Law 726 and Regulation 22 of the Credit Reporting Regulations, 2020 (LI 2394), eligible CRS participants such as the institutions listed above, the Central Bank said, are required to provide information about their customers to all credit bureaus approved by the Bank of Ghana within 72 hours of entering into a credit agreement or facility and obtaining credit reports on potential customers before entering into any credit transactions with these customers.

This will give institutions the ability to obtain information about their clients ‘credit behavior before establishing credit relationships, while ensuring that the information they provide to CRS about their clients’ credit behavior helps them. other creditors to make prudent credit decisions.

The Bank of Ghana urged institutions to take action to comply with the provisions of Law 726 by October 31, 2021.

The Credit Reporting System (CRS) is a database established under Law 726 to promote the sharing of debtor credit history information with lenders and other CRS users.

According to the Bank of Ghana, sharing credit information is beneficial for both lenders and borrowers / debtors as it helps lenders / creditors better assess the credit risk of each borrower / debtor. It also facilitates the granting and pricing of credit on a differentiated basis.

Since the entry into force of Law 726 in 2007, the Bank of Ghana has authorized three credit bureaus to provide credit assessment services to authorized financial institutions and the category of institutions listed above.

The approved credit bureaus are XDS Data Ghana Limited; Dun & Bradstreet Credit Bureau Limited et. HudsonPrice Data Solutions Limited.


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