Telcos, MoMo operators, seven others added to BoG’s list of CRS institutions

The Bank of Ghana (BoG) has added nine entities to its list of institutions required to participate in the Credit Reporting System (CRS) established under the Credit Reporting Act, 2007 (Act 726).

The CRS is a database established to promote the sharing of information on the credit history of debtors with lenders and other users of the CRS.

Credit reporting systems also form a critical component of credit infrastructure and contribute to expanding responsible access to credit to a significant number of individuals and firms.

Additionally, it supports financial regulators in supervising regulated institutions to ensure that the systems remain safe and sound, minimizing systemic risk.

The institutions include Telecommunication Companies (telcos), Mobile Money (MoMo) Operators, Utility Companies, Retailers, Financial Technology Companies (FinTechs), and government institutions that offer credit to Micro, Small and Medium Enterprises (MSMEs).

Institutions that provide identification documents, entities that supply goods and services on a post-paid or instalment basis, and the Student Loan Schemes provided by private or government agencies have also been added to the CRS list of institutions.

A statement issued by the Central Bank by its Secretary Sandra Thompson on July 30, sighted by The Ghana Report, noted that it has also added “other entities with relevant data and information that complies with permissible purposes of credit bureaus” to the list of CRS institutions.

Meanwhile, in line with Sections 24 and 26 of Act 726 and Regulation 22 of the Credit Reporting Regulations, 2020 (L.I 2394), eligible participants in the CRS, such as the institutions listed, are to provide credit information on their customers to all Credit Bureaus licensed by the BoG within 72 hours after entering into a credit agreement or facility.

According to the central bank, this would allow the entities to obtain information on the credit behaviour of their clients before establishing credit relationships.

It would also help ensure that the information they provide to the CRS on their customers’ credit behaviour helps other creditors make prudent credit decisions.

Additionally, they are to obtain credit reports on prospective customers before concluding credit transactions with such customers.

The bank has since served notice to the institutions to take steps to comply with the provisions of Act 726 by October 31, 2021.

Since the coming into effect of Act 726 in 2007, the BoG has licensed three Credit Bureaus to provide credit-reporting services to licensed financial institutions and to the above-listed category of institutions.

The licensed credit bureaus are XDS Data Ghana Limited, Dun and Bradstreet Credit Bureau Limited and HudsonPrice Data Solutions Limited.