The Bank of Ghana (BOG) has hinted to Citi Business News it will soon introduce a new regulation to protect consumers in financial sector.
The new law which will be rolled by the Bank of Ghana will affect only institutions regulated by the BoG.
BOG has the overall supervisory and regulatory authority in all matters relating to banking and non-banking financial business.
When introduced the consumer protection regulation will protect the general public who take loans from financial institutions.
The Assistant Director at the Financial Stability Department of the Bank of Ghana Akua Orleans Lindsay tells Citi Business News the regulation would ensure that financial institutions give loan applicants a cooling off period to decide whether or not they want the loan or not.
“What Bank of Ghana right now wants to do is, we are going to come out with a regulation called the consumer protection.
This regulation is for financial consumer protection but only for financial institutions regulated by Bank of Ghana.
By this we hope to make the consumer better informed, have more choices and being more transparency into the application of the loan process.”
According to her the regulation would make it obligatory for financial institutions to inform a loan applicant on how much she can take and terms of payment by monthly with the exact interest on the loan being applied and also the APR must be made known to loan applicants.
By: Norvan Acquah Hayford/citifmonline.com/Ghana
