Before the meeting on 11th May, 2023, a statement issued by the BoG said the expanded list will now include; telecommunication companies, utility companies, retailers, mobile money operators, financial technology companies (FinTechs) and government institutions that offer credit to MSMEs hence the meeting with GNCoP members.
Dr. Kwasi Osei-Yeboah who is the Assistant Director at Bank of Ghana started his speech by expressing his sincere gratitude to all for honoring the invitation, particularly the Ghana National Chamber of Pharmacy (GNCoP) for according to Bank of Ghana the audience when this process started. He continued by stating that Bank of Ghana is pleased to have been in locked-step through the on-boarding process for the Chamber to become data providers in the credit reporting system.
“While we take an industry-wide view of developments in the credit reporting space and for that matter promote broad participation across relatable segments, we see significant upside for entities that sign on. In the scenario where the generation of trade credits feature prominently in business operation, having some level of certainty about the credit worthiness of associates is a critical ingredient to mitigate risks in business decision-making,” he added
He further explained that in the context of the credit reporting ecosystem, the expansion of data sources for credit bureaus enhances the quality and completeness and transparency of credit exposures of individuals and businesses – be it through the bank or trade channels. This will in turn facilitate access to credit, enhance the credit market development and also support efficient operations of the banking and credit delivery systems in Ghana (providers).
“It is in respect, Ladies and Gentlemen, that the Bank of Ghana has in the past few months, been actively engaging officials of The Ghana National Chamber of Pharmacy (GNCoP) with the objective of enrolling its members on to the credit reporting system. We believe that the benefits of the credit reporting system to the members of the Chamber are enormous. Among other things, it will enable you conduct searches on the database of the credit bureaus on prospective trade credit applicants in order to strengthen and empower members to make informed credit decisions. This will help members to grant credit lines to business associates who are more likely to pay back and ultimately prevent high default rates,” he remarked.
Dr. Kwasi Osei-Yeboah educated the participant present that currently, there are two (2) licensed credit bureaus actively operating, namely, XDS Data Credit Bureau Limited and Dun and Bradstreet Credit Bureau Limited. These credit bureaus produce credit reports which are used to assess the historic repayment behavior of potential borrowers and also project future repayment behavior.
“At this juncture, ladies and gentlemen, it is without doubt the commitment of Bank of Ghana to support the development of the credit reporting ecosystem. Thus, while BoG is actively championing increased participation to bring in the likes of utility companies, designated retailers and other institutions, it is only fair to challenge the bureaus to innovate, invest and be well positioned to offer product tailored to the needs of specific sub-sectors,” he added whiles concluding on his speech
“Distinguish Ladies and Gentlemen, it is our expectation that today’s engagement would be fruitful, address any lingering concerns the Chamber’s membership may have and pave the way for a successful on boarding onto the credit reporting system. Thank you,” he concluded.
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