The Bank of Ghana (BoG) has listed the requirements for participation in the Credit Reporting System (CRS) pursuant to the Credit Reporting Regulations, 2020 (L.I 2394).

The Credit Reporting System is a database established under Act 726 to promote the sharing of information on the credit history of debtors with lenders and other users of the CRS.

Credit information sharing is beneficial to both lenders and borrowers/debtors as it helps lenders/creditors better assess the credit risk of each borrower/debtor.

It also helps to facilitate the delivery and pricing of credit on a differentiated basis.

In a letter signed by the Secretary, Sandra Thompson, the Bank noted that the following under-listed institutions are to take part in the System.

They are; Telecommunication Companies, Utility Companies, Retailers, Mobile Money Operators Financial Technology Companies (FinTechs), Government institutions that offer credit to MSMEs, Institutions that provide identification documents, Entities that supply goods and services on a post-paid or instalment basis, Student Loan Schemes provided by private or government agencies and other entities that have relevant data and information that complies with permissible purposes of credit bureaus.

According to the notice, the participating institutions are required to, “provide credit information on their customers to all Credit Bureaus licensed by the Bank of Ghana within 72 hours after entering into a credit agreement or facility.”

They are also expected to, “obtain credit reports on prospective customers before concluding credit transactions with such customers.”

These requirements, according to the Bank, are in line with Sections 24 and 26 of Act 726 and Regulation 22 of the Credit Reporting Regulations, 2020 (L.I 2394).

“This will afford the above-listed entities the opportunity to obtain information on the credit behaviour of their clients prior to establishing credit relationships, while ensuring that the information they provide to the CRS on their customers’ credit behaviour helps other creditors to make prudent credit decisions,” portions of the release with notice number BG/GOV/SEC/2021/13 noted.

The statement noted that the participating companies are to comply with the provisions of Act 726 by October 29, 2021.