Support Collateral registry regime – Frank Adu

Business News of Friday, 30 November 2012 Source: Daily Graphic The Chief Executive of CAL Bank, Mr Frank Adu Jnr, has called on his fellow bankers to support the collateral registry regime to ensure that it realises its objective of channelling credit to small enterprises. Mr Adu said the system, which among other things provides for collaterals registered with a body, the Ghana Collateral Registry, would help create the environment conducive for financial institutions to lend more to small and medium scale enterprises (SMEs) in the country which often lacked access to credit.“The SME sector form about 90 per cent of the business sector in the country but lack access to credit not necessarily because they do not have collateral or security but also because of their knowledge of the market and so on. The law will assist the bank in making funds available to SMEs in the country,” Mr Adu told the Daily Graphic after a workshop for legal officers and managing directors of banks in the country.The week-long workshop, which also sensitised small and medium scale enterprises, business executives and some legal practitioners, was part of a road show to create more awareness on the Borrowers and Lenders Act, which created the Collateral Registry.The chief executive of CAL Bank said a study of the India situation indicated that their government introduced a similar borrowers and lenders act which doubled lending to the SME sector in 18 months.He said there were several provisions in the Act that gave comfort and confidence to financial institutions to lend to small businesses.“The law protects lenders and borrowers unlike what people think that it only protects the borrower.