The active involvement of Fintechs in credit delivery in 2023 resulted in a total of 15.23 million loans being disbursed at a value of GH¢7.59 billion, representing 24.0 per cent and 37.0 per cent growth, respectively, over the same period in 2022, the Bank of Ghana has said in its annual report on credit reporting activity.

Additionally, the total outstanding credit of Deposit Money Banks (DMBs) stood at GH¢77.0 billion as of the end of December 2023, compared to GH¢70.0 billion as of the end of December 2022, representing a nominal growth of 10.0 per cent.

The average lending rate of DMBs reduced by 1.83% from 33.75 in 2023 compared with 35.58 in December 2022, the report said.

It added that the Credit Reporting System (CRS) remained relevant in achieving these positive developments in the credit sector in the year under review.

The activities of licensed credit bureaux and data providers facilitated credit information delivery in credit decision-making for both traditional bank credit and digital credits delivered through mobile money platforms, the report indicated.

It noted that there was a significant improvement in Banks and SDIs' compliance with the Credit Reporting Act 2007, (Act 726) regarding data submission and usage of credit referencing services resulting in an improvement in the quality of data submitted to credit bureaux.

“We noticed a significant reduction in complaints relating to credit reporting due to improvements in the quality of data submitted to credit bureaus and improvements in credit bureau operations. Furthermore, the year recorded increased participation from Designated Data Providers (DDPs), particularly from retailers and automobile companies.”

To strengthen the CRS and ensure that credit bureaus are well capitalised to invest, maintain robust information technology infrastructures and systems, and provide effective credit reporting services, the Bank of Ghana increased the minimum paid-up capital for existing credit bureaux and new entrants from GHS500,000.00 to GHS6,000,000.00, effective November 20, 2023.

Existing credit bureaux have been given up to January 2025 to meet the new paid-up capital.

The revision is by section 18(3) of the Credit Reporting Act, 2007 (Act 726).

The central bank said it continued its collaboration with Petroleum Service Providers (PSPs) and other industry players to enrol PSPs onto the Credit Reporting System as part of efforts to expand the scope of the CRS and de-risk the downstream petroleum sector.

The collaboration, it noted, will ensure the implementation of the Petroleum Downstream Credit Reporting (PDCR) and will provide trade credit visibility, reduce liquidity losses and credit default risk; provide relevant credit information to guide trade and credit decisions by PSP, establish trade credit standards, credit ratings of PSPs, credit monitoring, and reporting to credit bureaux.

The report mentioned that through the support of the National Petroleum Authority (NPA) and other stakeholders including the Chamber of Bulk Oil Distributors (CBOD), Legacy Bond Limited, Association of Oil Marketing Companies (AOMCs), and the Ghana Association of Banks, the Bank of Ghana and credit bureaux developed data templates and code of conduct for implementation of the PDCR.