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Financial sector dependent on Credit Reference Bureaus
 
Posted on: 06-Sep-2012        
 
 
 
Ghana’s financial sector is now almost 100 percent dependent on information from Credit Reference Bureaus before giving out loans to customers.

This is according to the pioneer Credit Reference Bureau Company XDS Data.

The referencing bureaus are said to have significantly contributed to reducing bad loans on the books of banks. Defaulters are now prevented from taking loans from different banks.

The bad loans have also prevented banks from adequately giving out loans to other customers as a result of the risks involved.

But the Chief Executive Officer of XDS Data, George Ahiafor told Citi Business News, the situation has changed dramatically.

He said: “From the feedback we are getting, I don’t think they are comfortable giving out a facility without a report and I don’t think any bank will deliberately refuse to know the information on their potential customers. So I would say hopefully, 100 percent of the service is helping them tremendously, especially to collect bad debt.”

Mr. Ahiafor expressed the hope that if “this continues, it should impact the lending rates, and it should impact access to credit so that more people will be able to access credit.”