Bank of Ghana to regulate digital lending with new guidelines

Financial institution of Ghana to control digital lending with new pointers

The Financial institution of Ghana is finalising complete digital lending pointers, anticipated to be issued by August 2025, to stop the exploitation of the general public by on-line lending platforms.

The Governor, Dr Johnson Asiama, stated in Accra on Thursday that the intervention got here amidst rising considerations about on-line lending platforms, exploiting many Ghanaians, significantly younger individuals and casual staff, who have been typically enticed by enticing guarantees solely to grow to be ensnared in cycles of hidden charges and harassment.

Asserting the upcoming pointers at a gathering with Chief Govt Officers of banks, Dr Asiama stated: “We’ve acquired stories of people being threatened, shamed, or scammed, all below the guise of accessing fast loans.”

“We can’t permit this to proceed. The upcoming pointers will carry clear, enforceable requirements to each bank-led and non-bank digital lending fashions.”

They might set up guidelines regarding licensing and authorisation, disclosure and rate of interest transparency, information safety, and buyer privateness, the Governor stated, noting that the rules would additionally embody moral restoration and assortment practices.

Dr. Asiama emphasised the Central Financial institution’s major objective of safeguarding debtors, particularly essentially the most susceptible, from exploitation, whereas concurrently fostering an atmosphere the place accountable, well-regulated digital lenders, together with banks and their fintech companions, may flourish.

He suggested establishments lively in digital lending, whether or not immediately or via third events, to evaluate their present fashions and put together for compliance.

Whereas Ghana’s digital lending schemes supply important potential for monetary inclusion, the sector faces quite a few challenges that should be addressed for sustainable development and sturdy shopper safety.

These challenges embrace unethical debt assortment practices, information privateness dangers and breaches, restricted monetary literacy, and a normal lack of belief amongst shoppers.

Supply: GNA

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