Accra, Ghana
D&B held a conference at the Labadi Beach Hotel, Accra on June 7. The conference was attended by the Central Bank of Ghana and management representatives from banks and micro-finance institutions.
All the attendees discussed the evolution and benefits of credit bureaus to the banking sector, in terms of quick and informed lending decisions, reduced non-performing loans and risk-based pricing of loans. The development of a credit bureau impacts the overall economy of the country as it encourages responsible borrowing and lending. In addition, it allows individuals and companies to easily access finance based on their past payment behaviour and provide opportunities for growth.
At this conference, we announced the launch of a D&B Credit Bureau in Ghana. D&B will be the second bureau in Ghana licensed by the Central Bank and the response received for the D&B Bureau was brilliant.
Addressing a large number of credit controllers, accountants, bankers and players in the financial services sector in Accra on the relevance of credit bureaus, Mr. Miguel Llenas, Senior Vice President, said “Once you do not have proper information on the businesses and individuals you want to offer credit to, you feel reluctant to do so and doing it without the information is also taking a huge risk”.
The heavy NPL in the books of the banks, which is about 14 per cent, has been partly attributed to the high interest regime in the country presently.
The call by Mr Llenas comes at a time when banks in the country have become increasingly reluctant to release information on their creditors for what is believed to be fear of sharing their clients’ credit history with others. But Mr Llenas said the reluctance of the banks to do so was rather posing a greater risk to their businesses.
The Associate Director of Dun & Bradstreet, Mr Evans Sarpong, in his presentation reinforced the concept of credit bureau saying, “In spite of the different models in different periods, sound and forward-looking credit management always starts from credit data”. He said credit bureau data had become more of a necessity during the financial crisis, boosting the use of monitoring tools.
The event was a huge success and well received by the financial community of Ghana.
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