Help Creditauxiliary credit
Bankers ordered to help reimburse credit cards to help individuals.
As Christopher Woolard of the FCA said to the BBC, "The new regulations are intended to help clients breaking the vicious circle of ongoing indebtedness and ensuring that those clients who cannot pay back their bills faster get help. A bank can continue to block a credit or debit card if a client does not make headway in paying back outstanding sums.
Approximately 3.3 million clients are permanently indebted - i. e. those who are paying more interest and fees than they are repaying their balances over a 18-month horizon. This cardholder pays an interest rate averaging 2.50 pounds and fees for every 1 pound of debts they reimburse. "Suggestions are not enough to require companies to modify the way they lend credit cards to new borrower.
There is still a chance of creating costly, long-term debt," the organization said.
Ghanaian banking community seeks more help with credit decision | Ghana 2017
Ghana, in collaboration with the International Finance Corporation, adopted the Credit Reporting Act of 2007, which set license and operating policies for the banking community, and required banks to disclose information to them. Ghana has since gradually built up its credit reference capacities with the objective of increasing lending, focusing on the small and medium-sized enterprises (SME) sectors.
"Since there are no alternatives, banking is the natural and only option for small and medium-sized enterprises to turn to for finance. Net results are higher costs for small and medium enterprises, as the interest rate for this mix is higher than for leverage," Robert Le Hunte, CEO of HFC Bank Ghana, said to OBG.
The XDSD Ghana, a daughter company of XDS South Africa, was founded in December 2008 as the first Ghanaian credit agency and started operation in 2010. The second office, Dun & Bradstreet, a wholly owned US company, was acquired and went into operation in March 2012. The credit cover has increased drastically in the five years since the first license was issued.
In Ghana, according to the World Banka, cover by credit bureaus increased from 2.1% of adult households in 2010 to 16.3% in 2015. In 2013, the Banque de Ghana (BoG) extended the available database by obliging non-bank banks, which have proved to be the gateway to the Ghanaian low-income finance system, to report.
The expectation is that MFIs will also have to submit information shortly as the regulatory framework for this sector is tightened by the Federal Banking Act. Whilst such policies offer appropriate short-term responses, the efficiencies of a more resilient credit refinancing sector are necessary for Ghana to achieve its objectives of extending credit to foster macroeconomic expansion.