The Bank of Ghana has reiterated its commitment to strengthening the credit market, highlighting the transformative impact of the Borrowers and Lender
The Bank of Ghana has reiterated its commitment to strengthening the credit market, highlighting the transformative impact of the Borrowers and Lenders Act, 2020 (Act 1052), during a sensitisation programme organized for members of the Ghana National Chamber of Commerce and Industry (GNCCI) at the La Palm Royal Beach Hotel on December 2, 2025.
Delivering the keynote address, Matilda Asante-Asiedu, Second Deputy Governor of the Bank of Ghana, emphasized that the programme aimed at deepening understanding of the Borrowers and Lenders Act and the operations of the Collateral Registry, tools that have become central to building a more transparent, predictable, and inclusive credit environment for the private sector.
“Meetings such as this are not routine engagements; they are part of a deliberate effort to ensure businesses have confidence and clarity to borrow, invest, and expand,” Asante-Asiedu stated.
She underscored that a robust private sector is critical to national economic growth, as access to finance drives job creation, innovation, and investment.
Addressing Longstanding Credit Market Challenges
The credit market has historically faced structural constraints, including information asymmetry, limited collateral options, inconsistent enforcement, and restricted access for smaller businesses.
These issues often raised borrowing costs and contributed to cautious lending behaviors among banks. Recognizing these bottlenecks, the Bank of Ghana has championed reforms over the past decades to modernize secured transactions and improve access to credit.
The first Borrowers and Lenders Act in 2008 laid the groundwork for modern credit practices.
However, evolving economic conditions necessitated a more comprehensive legal framework, resulting in the passage of Act 1052 in 2020.
The Act clarified credit agreements, security interests, and priority rules, while expanding the types of movable assets—such as inventory, accounts receivable, and equipment—that could be pledged as collateral. It also reinforced borrowers’ rights, including fair treatment, access to information, and disclosure requirements.
“These are not abstract legal provisions,” Asante-Asiedu noted. “They are practical tools designed to improve trust between borrowers and lenders, the most essential ingredient in any functioning credit ecosystem.”
Collateral Registry Shows Strong Impact
The Collateral Registry, operationalized under the secured transactions reforms, has significantly widened access to credit.
According to the Bank of Ghana, the number of secured borrowers registered with the Registry rose dramatically from 27 in 2010 to 372,902 by 2024, with over 1.3 million borrowers cumulatively receiving loans during the period. Notably, women and women-owned businesses accounted for nearly 77 percent of these borrowers, reflecting progress in financial inclusion.
Asante-Asiedu highlighted that these reforms have translated into tangible economic outcomes, including expanded credit, new investments, job creation, and enhanced resilience for businesses operating in a dynamic environment.
Emphasis On Responsibility And Credit Discipline
While access to credit has improved, the Bank of Ghana stresses the importance of responsible borrowing.
Sensitisation programmes such as this aim to educate borrowers on their rights and obligations under the Act, including proper use of collateral, timely repayment, and transparency.
“Access to credit is not simply about having laws and systems in place. It is also about behavior, responsibility, and good faith,” Asante-Asiedu said, urging participants to engage actively by seeking clarity in agreements, asking questions, providing feedback, and insisting on transparency from lenders.
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