Dr. Zakaria Mumuni
The Collateral Registry of the Bank of Ghana is currently investing in advanced technologies, including Artificial Intelligence, to enhance the system’s efficiency, security, and user experience.
The Registry is also undertaking policy and regulatory reforms to ensure the legal framework remains agile and responsive to the evolving credit landscape.
First Deputy Governor of the Bank of Ghana, Ghana, Dr. Zakari Mumuni, revealed this at a programme to mark the 15th Anniversary of the establishment of the collateral registry of the Bank of Ghana in Accra.
Dr. Mumumi also disclosed that the registry is also working to deepen partnerships with institutions as the Driver and Vehicle Licensing Authority, the Office of the Registrar of Companies, the Lands Commission, the International Finance Corporation (IFC), and the Swiss State Secretariat for Economic Affairs.
“These collaborations will introduce global best practices and technical support to drive further impact”, he added.
What is the Collateral Registry
The Collateral Registry is a body established by Parliament under the Borrowers and Lenders Act, 2020 (Act 1052) to primarily register security interests and collateral created by borrowers to secure credit facilities provided by lenders.
This was part of the Bank of Ghana’s function to regulate, supervise and direct banking and credit system aimed at ensuring smooth operations of the Financial Sector.
It is a notice filing registry that operates a web-based application designed to contain information relating to security interests in collateral created by borrowers to secure credit facilities provided by lenders.
Impact
The First Deputy Governor of the Bank of Ghana, praised the impact of the registry and how it has help to improve credit deliver in the country.
He noted that “Fifteen years ago, access to credit in Ghana was often constrained by rigid collateral systems, fragmented legal frameworks, and limited transparency”.
However, the situation has turned around today due to the workings of the collateral registry and how more Ghanaians can secure financing using movable assets – from vehicles to machinery to inventory.
“As we look ahead, our vision for the Registry is ambitious” the firs Deputy Governor added.
Dr. Zakari revealed that “the Collateral Registry has addressed these challenges head-on. “By creating a centralized platform for the registration of both movable and immovable assets, the Registry offered lenders a trusted and transparent system to assess credit risk and protect their security interests”, he noted.
The first Deputy Governor also highlighted another important role of the registry, when it comes to enforcement of security interest .
“Instead of prolonged court proceedings, lenders may now obtain a Memorandum of No Objection from the Registry, allowing them to realize security interests more efficiently. To date, over 4,450 such certificates have been issued”, he added.
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