The Chartered Institute of Credit Management Ghana (CICMG) is calling for a credit-based economy to boost lending to critical sectors of the economy.
It is therefore urging the government and other policy makers to introduce a Legislative Instrument to properly regulate the credit market, whilst ensuring a stable lending rate.
While the institute is appealing to the government and policymakers to introduce an LI, it is also proposing a swift action to address the rising non-performing loans.
Speaking at the 10th Anniversary Celebrations of the institute, Director General and Registrar of CICMG, Amo Agyapong, said no economy in the world has thrived without credit, citing countries such as USA, UK and Japan that has a strong credit system.
“In order to develop credit management in Ghana and to ensure that standards are set based on best practices, as well as the provision of services geared towards enhancing skills and capacity building of those involved in credit functions, there is the need to enact legislation to sanitise the sector, promote professional training in credit management and regulate the practice of credit management in the country. Having a Legislative Instrument (L.I) that safeguards the sector’s operation would be of more benefit than having just one aspect of credit management regulated".
“As we are all aware, for the economy to grow to the point of providing desired jobs and wealth creation, there must be credit extension at all levels of industrial and commercial activities. However, credit business extended or granted under a sloppy arrangement is an evil worse than an economy driven by a cash-and-carry regime”, he explained.
“All over the world, businesses extend credit to one another. Nonetheless, successful management of these credits has been hampered in our part of the world, abused to a large extent, following a lack of standards, unethical conducts and insider abuse”, Mr. Agyapong pointed out.
Credit systems necessary
Continuing, he said an economy driven by credit system ensures that national and statutory institutions put in place systems that regulate, set standards, moderate ethical conducts and build capacity of the people involved in managing, controlling and monitoring credit at all levels of credit activities.
According to him, addressing the gaps inherent in the drawbacks to an efficient credit system shape practices in the industry.
Furthermore, he said the incidence that triggered the world economic and financial meltdown in years back stemmed largely from improper attention to sound and controlled credit management system.
This, he said thus, re-enforces the need for every country to provide necessary safeguards and infrastructure to protect local credit market economy.
He expressed the Chartered Institute of Credit Management, Ghana commitment to bringing changes to credit business at all levels in Ghana and influence structures of risk measurement to protect the balance sheet.
Latest Stories
-
Fomena NPP executives smoke peace pipe after Napo’s intervention
12 mins -
Alan’s running mate slams gov’t for economic mismanagement, touts Alan as Ghana’s hope
31 mins -
Alan’s running mate Kwame Owusu Danso decries Ghana’s economic collapse, criticizes Bawumia’s leadership
38 mins -
Kwame Owusu Danso’s Emotional Tribute: From humble beginnings to Vice Presidential nominee
1 hour -
Newsfile to discuss NDC’s demand for audit of voter’s register, galamsey fight
1 hour -
Some major roadblocks in Accra, police outlines alternative routes
3 hours -
Vision FC set for tough test as Legon Cities seek first victory
3 hours -
Inland Fisherfolk want establishment of Development and Research Fund under new Fisheries Act
4 hours -
Communication professionals to discuss AI’s place in storytelling at ThinkStories Hangout
4 hours -
Country Lodge Hotel crowned Best 1-star hotel at 2024 Eastern Regional Tourism Awards
4 hours -
Filing fees of all disqualified applicants will be refunded – EC
5 hours -
We’ll end NPP’s 8 years of corruption – NDC justifies 8th position on ballot paper
5 hours -
EC has no power to determine who wins elections – Jean Mensa
5 hours -
Election 2024: It’s No.1 for NPP, No.8 for NDC on ballot paper
5 hours -
Learning Organisation wins HR, Training and Development Consulting Firm of Year 2024 award
6 hours