Credit Reporting bill before parliament

Accra, Nov. 14, GNA - Parliament on Tuesday took the Credit Reporting Bill through the consideration stage, during which some changes and amendment were made.

Ghana currently does not have a comprehensive and reliable credit information system available to lenders thus making them to rely solely on borrowers for information.

The bill when passed would provide a legal framework for the licensing, operation and supervision of credit bureaus in Ghana. It seeks to establish the conditions for the formation, processing; storage and disclosure of credit information.

Furthermore, the Bill is to provide for the orderly development of a credit reporting system and to promote public trust in the credit bureaus operation.

The Finance Committee in its report on the Bill noted that due to the absence of such a system, financial institutions were unable to make informed and reliable decisions in relation to the allocation of credit.

The lack of credit information system increases the risks of lending and causes financial institutions to provide less credit, thereby reducing the availability of credit for small and medium sized businesses.