Banking consultant Nana Otuo Acheampong has charged the Bank of Ghana and institutions participating in the Credit Reporting System (CRS) to ensure accuracy in the data they collect.

According to him, poorly kept records could lead to innocent borrowers being rated unfairly by lenders.

The remarks come on the back of the announcement of the expansion of the list of companies that can participate in Ghana’s Credit Reporting System.

The Credit Reporting System is a database established under Act 726 to promote the sharing of information on the credit history of debtors with lenders and other users of the Credit Reporting System.

Years after the passage of the Credit Reporting Act, 2007, the Bank of Ghana in pursuant to the Credit Reporting Regulations, 2020 (L.I 2394), has expanded the list of institutions required to participate in the Credit Reporting System to include the institutions like Telecommunication Companies, Utility Companies, Retailers, Mobile Money Operators, FinTechs, Student Loan Schemes provided by private or government agencies among others.

Speaking to Citi Business News following the expansion of the list, Banking Consultant Nana Otuo Acheampong said the move is likely to impact the pricing of credit for borrowers across the country.

“Pricing of credit is primarily looking at the risk complexion of the borrower, and so the better the risk, the better the price that will be put on that credit. So this is in a way going to help both the borrowers and the lenders because borrowers with good credit will get access to cheap credit, those with bad credit will access more expensive loans.”

Nana Otuo Acheampong further charged the regulator and lenders to ensure that records are accurate and up to date to prevent any unfair assessment of borrowers.

“It is a good start, but the problem that we may have is with the accuracy of the records that we have. We have instances where after paying for loans, banks still have inaccurate information on borrowers years later, which will affect your credit worthiness. So with the expansion of the list, we have to ensure accurate records are kept so no one is disadvantaged,” he advised.