"BoG Lauds Collateral Registry’s Role in Deepening Financial Inclusion, Enhancing Credit Risk Management"

BoG Lauds Collateral Registry’s Role in Deepening Financial Inclusion, Enhancing Credit Risk Management

The Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, has lauded the Collateral Registry for its pivotal role in expanding access to credit and deepening financial inclusion in the country.

Delivering a keynote address on his behalf at the 15th anniversary of the establishment of the Collateral Registry, First Deputy Governor of the Central Bank, Dr. Zakari Mumuni, noted that the Registry has transformed the credit ecosystem by allowing Micro, Small, and Medium Enterprises (MSMEs) to use movable assets such as stock, receivables, and tools of trade as collateral to access credit.

“This development is a significant step toward democratizing finance in Ghana,” said Dr. Mumuni. “By unlocking access to credit for underserved groups, the Registry has contributed meaningfully to job creation, business resilience, and local economic growth.”

The Registry, he stated, has also played a critical role in bridging the information gap between borrowers and lenders. Through real-time verification of pledged assets, the platform has reduced lending risks and improved the accessibility of credit.

Financial institutions, Dr. Mumuni explained, now benefit from more robust credit risk management systems due to the Registry. “Today, financial institutions make better-informed lending decisions, and borrowers enjoy more predictable and efficient processes,” he added.

Enforcement of security interests has also seen notable improvements. Rather than enduring prolonged court procedures, lenders can now obtain a Memorandum of No Objection from the Registry to efficiently realize security interests. Over 4,450 such certificates have been issued to date.

Established in February 2010 under the Borrowers and Lenders Act, 2008 (Act 773)—now replaced by the 2020 Act (Act 1052)—the Collateral Registry was created to address challenges within Ghana’s secured credit system. Prior to its creation, lending was largely constrained by fragmented legal frameworks, limited data on collateral, and a preference for immovable assets, restricting credit access for businesses lacking traditional security.

According to Dr. Mumuni, the Registry has since offered a centralized and transparent platform for the registration of both movable and immovable assets, enabling lenders to better assess credit risk and protect their interests.

Looking to the future, Dr. Mumuni disclosed that the Central Bank is investing in advanced technologies—including artificial intelligence—to enhance the Registry’s efficiency, security, and user experience.

He also hinted at ongoing policy and regulatory reforms aimed at keeping the legal framework agile and responsive to Ghana’s evolving credit landscape.

“As we commemorate this milestone, we remain committed to leveraging innovation and regulatory agility to ensure the Registry continues to support a dynamic, inclusive financial ecosystem,” Dr. Mumuni concluded.