BoG exposes 19 unlicenced entities engaged in lending

BoG abolishes unfair fees and charges
Dr. Ernest Addison , Governor of BoG

The Bank of Ghana has exposed 19 unlicenced entities engaged in the provision of loans to the Ghanaian public.

The Bank in a statement observed that this in contravention of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).

The central bank noted that the activities of these unauthorised entities amount to non-adherence to the consumer protection requirements, and are an abuse of customer data and privacy laws.

“These illegal entities mostly employ the use of mobile applications and social media in their activities.

“The Bank of Ghana is taking steps to take action against these entities, and hereby advises the general public to desist from doing business with all unlicenced loan providers. Banks and Specialised Deposit-Taking Institutions, as well as payment service providers, are advised not to facilitate the illegal transactions of unlicenced loan providers,” it stated.

Among the entities providing loan services without a licence from the Bank of Ghana are: SikaPurse Quick Online loan; 4Cedi Instant Mobile loan application; Zidisha Online Loans; GhanaLending Application; ChasteLoan Application; LoanClub-Ghana Instant Loan; AdamfoPa Loan MetaLending- Instant Cash Loan; Wohiasika Loan (; and Boseafie – Bosea Micro-Credit

The others are SikaKasa Online Lending; LoanPro – digital and instant loan; SikaWura Loan Application; BegyeBosea Loan; LendingPapa – Online Loans; CrestCash Loan; Credxter – Loans and Hire- Purchase; MobiLoan Application; and Cedi Now – Cash Loans Application.

The central bank is thereby cautioning the general public to desist from conducting such kinds of business with these institutions, as they do so at their own risk.

Bank Lending

Nonetheless, data from the Bank of Ghana have shown that deposit money banks’ credit to the private sector increased by GH¢14.4billion (33.73 percent) in June 2022, compared with GH¢2.71billion (6.76 percent) recorded in the corresponding period of 2021.

Outstanding credit to the private sector at end of June 2022 was GH¢57.16billion, compared with GH¢42.74billion recorded in June 2021. In real terms, private sector credit grew marginally by three percent in June 2022, compared with a 0.97 percent contraction recorded in the corresponding period of 2021. Real growth in private sector credit inched above the long-run trend.

The significant increase in growth of private sector credit reflected banks’ portfolio rebalancing. Private sector credit accounted for 91.1 percent of total flow of credit extended to both private and public institutions in June 2022, relative to 105.4 percent recorded in the corresponding period of 2021. Credit flow to the private sector remained concentrated in four sectors: services; commerce and finance; construction; and manufacturing.

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