WOMEN'S WORLD BANKING GH.

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2 CONTENT Background of Women s World Banking Ghana. Position before the introduction of Borrowers & Lenders Act Borrowers & Lenders Act 2008 Impact of the Borrowers & Lenders Act on WWBG Collateral Registry WWBG challenges before collateral registry Impact of the Registry on WWBG lending

3 BACKGROUND Women's World Banking is a network of affiliate organizations in 40 countries, centered in New York, which works to train, assist, and lend credit to low-income women entrepreneurs all around the world. The WWB network members and partners provide lending services to over 16 million low-income entrepreneurs and households in 33 countries throughout Asia, Latin America, Africa, the Middle East and Eastern Europe. During the UN conference on Women in Mexico in 1975 a team from Ghana, presented a paper on the need for the establishment of a financial institution to support women entrepreneurs in view of the difficulties women often encounter in meeting the demand for collateral by the traditional commercial banks. Based on Ghana s presentation and the support given by other countries Women s World Banking the world over was born.

4 Ghana s team returned home and gradually rallied other women to start its operation in 1988, initially as an NGO which trained women on how to manage their businesses and on basic business record keeping. The NGO also guaranteed women entrepreneurs to take loans from local banks to support their businesses. A susu operation (i.e. thrift deposit mobilization) through which contributors obtained finance for their operations was also introduced. WWBG became fully operational in 1994 as a non-bank financial institution regulated under the Central Bank of Ghana as a deposit taking and loan granting financial organization.

5 Headquartered in the Nation s Capital, WWBG has seven (7) branches and 6 Virtual banking centres in Ghana s Golden Triangle of the Greater Accra Region- Accra and Tema,Western Region- Takoradi and Ashanti Region- Kumasi. WWBG is still an affiliate of the Women s World Banking global organization that has a network of microfinance institutions and banks that work to help low-income entrepreneurs around the world.

6 Mission Our mission is to meet the financial service needs of women and other entrepreneurs in the micro/small business sector, ensure a good work environment that recognizes the value of our employees and provide excellent return on investment to our shareholders.

7 CLIENTELLE Male Female % No of Deposit0rs 36% 64% % No of Loan Clients 36% 64%

8 PRODUCTS Deposit Products Savings Fixed Deposits Current/Chequing accounts Loan Products Micro Individual Loans Micro group loans Auto Loans MFI Loans Salary Loans

9 LOAN SIZES GH 100 GH 50,000 ie Micro to SME

10 PRE BORROWERS & LENDERS ACT No opportunity for Credit Referencing e.g Referencing in relation to other existing credit facilities, payment behaviour etc. Lack of Easy search of collateral in use delayed loan processes.

11 BORROWERS & LENDERS ACT 2008 The Act regulates relationship between Borrowers and Lenders and offer explicit guidelines to full disclosure by the Lender and the rights & responsibilities of the Borrower

12 IMPACT OF THE ACT ON WWBG There is full disclosure of the rights and responsibilities of the borrower thus making them more enlightened on their rights/responsibilities - come prepared with requirements making loan processing faster. The Credit Reference Bureau WWBG now has easy access to information on borrowers and may lend to only credit worthy Borrowers hence improving Portfolio Quality which is key to sustainability. As per the act, the institution has established a Risk Department which does a thorough credit risk assessment on all loans before they are processed thus reducing risk to its minimum.

13 COLLATERAL REGISTRY The Registry receives, stores and make available information to the public on registration information relating to charges in property.

14 PROCESSES INVOLVED IN USAGE OF COLLATERAL REGISTRY Collate information from branches Fill data on BoG Lenders Module form Download to WWBG site on the registry website Will receive feedback on successful download Go to BoG software and locate WWBG site and confirm download.

15 WWBG CHALLENGES PRE- INTRODUCTION OF COLLATERAL REGISTRY Difficulty in checking encumbrances on collateral. Had to follow long court processes with a lot of adjournments to realize a security to recover loans

16 IMPACT OF THE REGISTRY Facilitate easy seizure and sale of collateral pledged in times of default. - Access to certification to sell collateral to recover loans within a day. Allows for use of movable assets as collaterals, hence in the case of Women s World Banking Ghana (WWBG) where often times women do not have immovable assets as collateral, They are now able to access loans with ease. Easy access in checking documents as to whether it is in use for another facility or not. This speeds up the loan disbursement process.

17 KEY TO SUCCESS MONITORING of movable assets. All financial institutions using the registry.

18 THANK YOU