The number of secured loans granted to females and businesses owned by females witnessed steady growth in 2023, the Bank of Ghana has disclosed.

In all, the number of secured loans granted to female-owned businesses was 188,439 representing 81.9% of total secured loans registered.

Total secured loans granted to males and businesses owned by males stood at 39,272 accounting for 17.1% of total secured loans.

Despite the increase in the volume of secured loans granted to women, males and businesses owned by males received the highest value of secured loans.

In 2023, the total value of secured loans granted to males and businesses owned by males was GH₵13.4 billion representing 79.3% of the total value of loans granted.  The total value of secured loans, granted to females and businesses owned by females stood at GH₵3.5 billion representing 20.7%.

The development, according to the Central Bank, could be attributed to the type and value of assets owned and presented as collateral by women.

Data at the Registry revealed that account receivables, consumer and household goods, and inventory and stock of goods from the major types of collateral used by females and businesses owned by females to secure credit.

Searches

Meanwhile, the number of searches on the registration status of collaterals reduced in 2023.

The total number of searches conducted in 2023 was 59,103 compared to 62,073 recorded in 2022 representing a 4.8% year-on-year decline.

Failure on the part of Registered Financial Institutions to conduct searches poses the risk of accepting assets that have been encumbered, resulting in a potential risk of increased Non Performing Loans in the event of a default by a borrower.

To address the identified risks in this area, the Collateral Registry has intensified its sensitisation efforts to create awareness of the benefit of conducting searches.