The Bank of Ghana (BoG) is set to deploy advanced technology-based solutions including artificial intelligence (AI) to enhance the efficiency, security and user experience of the collateral registry to keep it in tandem with international best practices.

The solution is expected to precede comprehensive policy and regulatory reforms to ensure the legal framework remains agile and responsive to the evolving credit landscape. 

It will also deepen partnerships with institutions such as the Driver and Vehicle Licensing Authority (DVLA), the Office of the Registrar of Companies, the Land Submission International Finance Corporation and the Swiss State Secretariat for Economic Affairs (SECO) to leverage international best practices and technical expertise to drive greater impact.

The collateral registry was established under the Borrowers and Lenders Act, 2008 (Act 773), later repealed and replaced with the 2020 Act (Act 1052).

Its creation was a response to a fragmented system for secured credit, where multiple laws coexisted without offering a clear or efficient path for lenders and borrowers.

Speaking at the 15th anniversary of the bank’s Collateral Registry Department in Accra on Wednesday, June 11, the First Deputy Governor of the bank, Dr Zakari Mumuni said before its establishment in February 2010, lending was hampered by information asymmetry, limited data on collateral, and a preference for immovable assets. 

He said the lack of a streamlined framework increased risk for lenders and restricted credit access for businesses without land or buildings to pledge.

"The collateral registry 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 said.

Access to credit 

Dr Mumuni stated that the fifteen years ago, access to credit in the country was often constrained by rigid collateral systems, fragmented legal framework, and limited transparency. 

He said the work celebrated here has transformed access to finance for small business owners, enabling more Ghanaians to secure loans using movable assets like vehicles, machinery, and inventory.

He said the collateral registry has played a pivotal role in revolutionising Ghana's credit market and promoting financial inclusion, particularly for small and medium-sized enterprises.

He said beyond its functional role, the registry has emerged as a powerful tool for economic empowerment.

Potential 

The Head of Collateral Registry Department of Bank of Ghana, Fred Asiama Koranteng, stated that the registry has helped unlock the potential of movable assets, including livestock, equipment, vehicles, inventory as viable forms of collaboration. 

“I am pleased to report that there has been a significant increase in the registration of security interests on the registry platform. For example, in 2010, we registered 10,413 security interest registrations.

“This figure rose to 382,215 registrations for the year 2024. Overall, as at the end of 2024, the registry had registered over 1.4 million security interests, with an average growth rate of 31.5 per cent. Indeed, the registry registers approximately 9,000 security interests every week,” he said. 

He said the statistic represent a story of empowerment, economic opportunity, and of a better future. 

He added that the registry, having grown from an emerging outlet to a cornerstone of garnished credit infrastructure, has significantly contributed to the creation of an enabling environment for many small businesses to access credit that was once beyond their reach.