Minimum capital for credit bureaus now GH¢6 million

The Bank of Ghana (BoG) has increased the minimum paid-up capital for both existing and new entrant Credit Bureaus to GHS6 million from the previous GHS500,000.

This took effect from November 20, 2023, with existing credit bureaus having up to January 2025, to meet the new minimum paid-up capital.

The Central Bank in a statement said the increment is to strengthen the country’s credit reporting regime, well-capitalised investment by credit bureaus.

It also stated that such capital increment would help maintain a robust information technology infrastructure and systems and provide effective credit reporting services.

“All credit bureaus and prospective applicants for credit bureau licenses should take note and be guided accordingly,” the statement stated.

“Non-compliance with the new minimum paid-up capital requirement shall be dealt with in accordance with Section 11 (1) (e) of the Credit Reporting Act, 2007 (Act 726),” the statement noted.

Thus, the Bank shall revoke the licence of the credit bureau because it has ceased to satisfy the requirements on minimum capital for the establishment.

The revision, the Central Bank said was done in accordance with Section 18 (3) of the Credit Reporting Act, 2007 (Act 726).

Credit bureaus are commercial entities that collect information from financial and non-financial institutions, including microfinance and credit card companies, and provide consumer credit information.

Their operations are a prerequisite for ensuring transparent credit information to ensure sound risk management and financial stability, as financial and non-financial institutions draw on their reporting systems to screen borrowers.

Regulators, like the Bank of Ghana, also rely on credit information from bureaus to understand the interconnected credit risks faced by borrowers and financial institutions, and to conduct oversight functions.