The Association of Ghana Industries (AGI) has proposed the establishment of credit reference bureaus and a collateral registry as a key step toward addressing non-performing loans in the banking sector.

Chief Executive Officer of AGI, Seth Twum-Akwaboah, argued that embedding such mechanisms into the financial system would improve credit risk management, strengthen loan recovery, and enhance banks’ ability to track repayment obligations.

Speaking at a panel discussion during the opening of National ICT Week, Mr. Twum-Akwaboah also underscored the importance of digitalization for small and medium-sized enterprises (SMEs), stressing that technology adoption is crucial for scaling operations.

“You may be a performing enterprise, but once you approach a bank for a loan, they are assessing the entire ecosystem. If part of their loan portfolio is not being recovered, they increase interest rates across the board to make up for it. That means even businesses that repay diligently are penalized,” he explained.

He added that digital tools, credit reference systems, and a collateral registry would enhance transparency and accountability in the credit market. “If someone defaults, deal with that individual. Their non-performance should not unfairly raise the cost of borrowing for everyone else,” he said.

The AGI boss further proposed a public-private partnership framework to expand digital infrastructure, allowing businesses and government to collaborate in building a more resilient financial ecosystem.

High lending rates remain a major concern for businesses in Ghana, with many citing the cost of capital as one of the biggest barriers to growth and investment.

Meanwhile, the Governor of the Bank of Ghana, Dr. Johnson Asiama, has expressed optimism that interest rates could fall into single digits before the end of his tenure. He pointed to ongoing monetary policy reforms, stabilizing inflation, and exchange rate discipline as factors that would help create conditions for lower borrowing costs.