The Bank of Ghana has issued a firm directive to all institutions participating in the country’s credit reporting system, ordering them to strictly comply with existing credit reporting regulations.
The move reinforces the central bank’s determination to strengthen financial discipline, improve risk assessment, and reduce the growing threat of credit defaults across the economy.
In a notice issued by the Financial Stability Department, the Bank of Ghana charged all institutions engaged in any form of credit business to actively submit accurate and timely data on individuals and businesses to licensed credit bureaus. According to the Bank, adherence to this requirement is not optional but a statutory obligation under the Credit Reporting Act 2007, Act 726.
Mandatory Engagement with Licensed Credit Bureaus
The Bank directed institutions to contact any of the three licensed credit bureaus for credit information or to submit required customer data. These bureaus are XDS Data Ghana Limited, Dun and Bradstreet Credit Bureau Limited, and My Credit Score Limited.
The notice stated that “any institution engaged in any form of credit business [should] contact any of the three licensed credit bureaus for the necessary credit information or submit a request.” This directive applies to both lenders seeking credit history information and institutions required to contribute customer data to the system.
By insisting on full participation, the Bank of Ghana aims to ensure that lenders operate with a comprehensive understanding of borrower credit behaviour before extending credit facilities.
Legal Framework Supporting Credit Reporting
The Credit Reporting System is anchored in the Credit Reporting Act 2007, Act 726, which established a national database for sharing credit information among lenders and other authorised users. The framework promotes transparency, accountability, and informed decision making within the credit market.
According to the Bank, the system benefits both lenders and borrowers. Lenders gain access to reliable credit histories that support better credit risk assessment, while borrowers with good repayment records are rewarded with improved access to finance and potentially lower borrowing costs.
Impact on Credit Costs and Non Performing Loans
Since the operationalisation of the credit reporting system in 2010, the Bank of Ghana has observed a notable reduction in credit costs and non performing loans. The central bank believes the system has played a critical role in strengthening credit discipline and improving loan portfolio quality across the financial sector.
By sharing accurate and timely credit data, institutions contribute to a more resilient financial system where reckless lending is discouraged and responsible borrowing is rewarded. The latest directive is therefore seen as a continuation of efforts to preserve financial stability amid evolving economic pressures.
Expanded List of Reporting Institutions
In 2021, the Bank of Ghana significantly expanded the list of institutions required to participate in the Credit Reporting System. This expansion reflects the changing nature of credit provision and the increasing role of non traditional lenders in the economy.
Institutions now required to report include telecommunication companies, utility service providers, retailers, Mobile Money Operators, and financial technology firms. Government agencies that provide credit to Micro, Small, and Medium Enterprises are also covered under the framework.
Additional participants include entities that issue identification documents, suppliers of goods and services on postpaid or instalment arrangements, and student loan schemes operated by both private and public agencies. Other data holding institutions whose information aligns with the permissible purposes of credit bureaus are also expected to comply.
Strict Timelines for Data Submission
Under current regulations, eligible institutions must provide credit information on their customers to all licensed credit bureaus within 72 hours of entering into a credit agreement or facility. This requirement ensures that credit data remains current and reliable for decision making purposes.
Institutions are also required to obtain credit reports on prospective customers before extending any form of credit. This obligation enables lenders to assess the repayment history and overall creditworthiness of applicants, reducing the likelihood of default.
The Bank of Ghana believes that strict compliance with these timelines will enhance market discipline and protect lenders from avoidable credit losses.
Strengthening Financial Stability
The renewed emphasis on credit reporting compliance comes at a time when the central bank is focused on safeguarding financial stability and rebuilding confidence in the financial system. By enforcing existing laws, the Bank aims to improve data integrity, support prudent lending practices, and promote sustainable credit growth.
More importantly, it underscores the role of accurate credit information in supporting economic growth, protecting consumers, and maintaining a sound financial system.
As Ghana’s credit market continues to evolve, effective implementation of the Credit Reporting System remains a critical pillar in managing credit risk and strengthening financial resilience.
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