Joy Business’ checks at the Collateral Registry indicate a lot more banks are accepting movable assets as guarantees for loans.
This is evident by the number of transactions involving banks enquiring about the assets submitted by individuals and businesses in their loan applications.
Lenders have traditionally demanded immovable assets such as houses, and lands.
The establishment of the registry however means that moveable assets such as computers, vehicles and even outboard motors are being registered as collaterals for loans.
The trend, according to the Registrar, Mike Oppong-Adusah is encouraging.
“To them it is easier to do the realizations as far as movable properties are concerned.
“Most of the things that they are registering now are made up of movables and it is easier for them to realize those movables when borrowers default.
“…The aspect of not going to court makes it very expedient and very fast”, he told Joy Business.
He added that all the banks have access to the registry which will help improve credit flow to businesses and drive down interest rates.
The registry was established in February this year and has so far recorded a little over five thousand assets.
More than 2,000 requests have been made by the banks with vehicles and goods in transit amongst the most popular searches.
The registry, managed by the Bank of Ghana aims at ensuring that assets used as guarantee for loans are actually worth their stated values or can be used to secure more than one loan in instances where the value of the asset far exceeds the facility taken, thereby reducing the risk of default and litigation.
It is however hoping to automate its workings by March next year so that banks can do online searches while individuals also register their assets from the comfort of their homes.
Source: Joy Business/Myjoyonline.com/Ghana