In its annual report on credit activities, the Bank of Ghana said it identified the lack of credit checks in the appraisal and disbursement of digital loans provided by some financial institutions through mobile money platforms.

To mitigate the potential risks of adverse selection in the appraisal of these types of loans, the central bank said it began an engagement with stakeholders with recommendations of integrating the Loan Origination Software of lenders with credit bureaus.

The Bank of Ghana also saw significant improvement in the quality of data submitted to credit bureaux and improvement in the submission of data relating to digital loans.

A total of 16 Microfinance Institutions and 6 Rural and Community Banks were cautioned for failing to subscribe to the services of credit bureaus or submitting data to credit bureaus.

This was an improvement over 2022 where 60 RCBs and 11 MFIs were cautioned for various breaches.

These sanctions have led to an improvement in financial institutions' compliance with the Credit Reporting Act and Regulations.