Ghana must ‘effectively’ implement policy on 'Collateral Registry'

World Bank in collaboration with the Bank of Ghana and Frankfurt School of Finance and Management has organised a two-day workshop to sensitise journalists on credit reporting and collateral registry.

The workshop which forms part of the World Bank’s campaign on financial literacy and public awareness took place at Winneba in the Central Region.

Participants who are journalists were drawn from about 13 media organisations across Ghana.

Speaking to participants, a consultant with Frankfurt School of Finance and Management, Mawuko Williams said, it was about time Ghana effectively practicalize its policy on Collateral registry and credit reporting.

According to him, banks are hesitant to give loans because they have less or no information about borrowers, therefore, with the advent of Collateral registry and credit reporting, financial institutions will have accurate information about borrowers which will help reduce the financial gap.

"Credit reporting and collateral registry will enhance responsible borrowing," Mr Mawuko added.

Elaborating on why financial institutions sometimes refuse loans to SMEs and individuals, he said, "So many borrowers do not read agreement nor know their rights.”

He urged journalists to educate the general public on the need to be well informed in order to make very responsible and informed financial decisions.

"Let the public know that all information gathered on them at any financial institution at the point of borrowing is being gathered at a central point. Therefore, when they default payment all other financial institutions will get to know of it and they may not be able to borrow anywhere," he stressed.