Verify assets to curb litigation in property and vehicle deals – BoG

The Bank of Ghana has disclosed that failure by buyers to verify the status of assets before completing transactions is driving a growing number of disputes and litigations in property and vehicle deals.

Director at the Collateral Registry at BoG, Fred Asiamah-Koranteng, explained that many prospective buyers commit funds to purchases without conducting due diligence through the Collateral Registry, only to later discover that the assets have already been used as collateral for loans, leaving them exposed to legal and financial risks.

The Collateral Registry, established under the Borrowers and Lenders Act, enables users to check whether an asset is encumbered.

For a fee of GH¢10, payable via mobile money or digital banking platforms, he said individuals can conduct an online search to determine the legal status of property, vehicles and other assets before purchase.

“The process is straightforward but often overlooked. If you check and the asset appears in the system, it confirms that it is encumbered. If it does not, that also serves as a safeguard, particularly in the event of a dispute,” he said.

Asiamah-Koranteng spoke at a borrowers and lenders workshop organised by the Association of Ghana Industries (AGI) in Accra.

He noted that several cases have emerged in recent times where buyers, halfway through transactions, discover that developers or sellers had already pledged the same assets to secure credit facilities, complicating ownership claims and resulting in legal action.

He clarified that the registry does not establish ownership but provides key information on whether an asset has been used as collateral and the extent of such encumbrance. This is an essential consideration for both buyers and lenders in managing risk.

Asiamah-Koranteng, therefore, urged the general public and business community to make asset verification a routine step in all major transactions.

He noted that increased awareness and usage of the registry could significantly reduce avoidable disputes and strengthen confidence in the market.

Matilda Asante-Asiedu, Second Deputy Governor of the Bank of Ghana, in a speech read on her behalf, said efforts to deepen understanding of a secured credit system form part of a broader initiative to build a more transparent, predictable and inclusive credit environment.

She said the workshop aims to help industry players better navigate the country’s credit infrastructure and regulatory framework.

“With a diverse membership of over 1,200 companies across several sectors and sub-sectors, we believe the Association of Ghana Industries is well positioned to benefit significantly from policy directions and developments that shape the banking and credit landscape,” she said.

Asante-Asiedu noted that recent macroeconomic indicators point to a sustained recovery, citing a sharp decline in inflation from a peak of 54.1 percent in December 2022 to 3.2 percent at the end of March 2026, one of the lowest levels in recent years.

She added that the monetary policy rate has also eased significantly to 14 percent from 28 percent a year ago, creating a more favourable environment for private sector credit expansion.

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However, she stressed that these gains would only translate into real economic benefits if businesses are able to take full advantage of improved financing conditions to drive growth and competitiveness.

She observed that despite the private sector’s central role in employment and production globally, access to finance remains constrained by information asymmetry, limited collateral options and weaknesses in enforcement mechanisms.

These challenges, she said, have contributed to higher borrowing costs and cautious lending behaviour, ultimately slowing innovation, job creation and broader economic expansion.

She explained that the Bank of Ghana’s financial sector reforms, including the Credit Reporting Act, 2008 (Act 726) and the revised Borrowers and Lenders Act, 2020 (Act 1052), have resulted in secured transactions framework by improving clarity on the creation, registration and enforcement of security interests.

At the centre of this framework is the Collateral Registry, which, she noted, has registered 1.92 million secured transactions between 2010 and 2025, alongside 3.2 million assets, underscoring its growing importance in expanding access to credit, particularly for individuals and underserved businesses.

“While these outcomes are encouraging, they also strengthen our resolve to deepen these gains, expand outreach and ensure that the benefits of secured credit are more widely distributed across the economy,” she said.

While urging businesses to leverage the system more effectively, she added that although collateral remains a key consideration in lending decisions, it is only one component of credit assessment, with lenders also requiring accountability and sound financial conduct from borrowers.

Asante-Asiedu, therefore, urged industry players to make greater use of the secured transactions framework, noting that improved awareness of the system would enable businesses to leverage existing assets for financing and reduce reliance on traditional forms of collateral.

The Bank of Ghana, she said, remains committed to continuous engagement with stakeholders to strengthen a secured credit framework and ensure it evolves in line with developments in the financial and credit markets.

AGI President

For his part, AGI’s President, Kofi Nsiah-Poku, said: “From the council and members of the Association of Ghana Industries, we are particularly grateful to our valued partners, the Bank of Ghana, for granting us this unique opportunity for knowledge acquisition. We believe our efforts to converge here from our various places of work will yield positive outcomes”.

He expressed confidence that the workshop would guide AGI members through the provisions and practical implications of borrowers and Lenders Act, saying: “I wish to commend the Bank of Ghana for its efforts in ensuring macroeconomic stability and sustainability. Indeed, macroeconomic stability has a positive bearing on lending rates. Your presence, therefore, underscores the importance of collaboration between industry regulators and financial institutions in strengthening the credit environment”.

“The Borrowers and Lenders Act represents a major step forward in promoting responsible lending, protecting borrowers’ rights, and enhancing transparency and efficiency within our credit system.

“For businesses, especially small and medium-sized enterprises, access to finance remains a critical pillar for growth, expansion and sustainability. However, access must be supported by clear rules, mutual accountability and a shared understanding of rights and obligations,” he added.