The Bank of Ghana (BoG) has reported a remarkable 69.3% increase in collateral registrations for the third quarter of 2024, with a total of 95,340 registrations recorded compared to 56,314 during the same period in 2023.
This uptick, detailed in the BoG’s latest Quarterly Collateral Registry Brief, highlights growing confidence in credit facilitation and the formal lending framework.
Savings and Loans Companies (S&Ls) accounted for the majority of registrations, recording 82,737 in Q3 2024, an 81.4% rise from 45,601 in Q3 2023. Similarly, Rural and Community Banks (RCBs) registered a 31.2% increase, with 8,235 registrations compared to 6,278 the previous year.
Conversely, banks experienced a decline of 12.7%, with registrations dropping from 2,019 to 1,763. Leasing companies registered the least activity, with only seven entries during the quarter, down from 11 in Q3 2023.
Search activity at the Collateral Registry also saw an increase, rising 16.6% year-on-year to 17,727 in Q3 2024 from 15,204 in Q3 2023. Savings and Loans Companies conducted 13,049 searches, representing 73.6% of total searches. Rural and Community Banks accounted for 3,229 searches (18.2%), while banks contributed 885 searches (5%). Microfinance and Micro Credit Institutions collectively accounted for just 1.3% of all searches conducted.
The surge in collateral registrations and search activity underscores growing reliance on formal credit systems and secured transactions. The dominance of S&Ls and RCBs reflects their pivotal role in providing credit access, particularly to underserved and rural communities and small and medium enterprises. However, the decline in bank registrations indicates potential shifts in lending strategies or market preferences.
