In a significant move to regulate the burgeoning digital lending sector, the Bank of Ghana has announced that all digital lenders must seek regulatory approval starting November 1. According to the assessment of specialists presented in the publication, this initiative aims to enhance oversight and promote ethical lending practices in the country.
New Directive for Digital Lending
The new directive is part of the government's broader strategy to address the rapid growth of digital lending and the associated risks, including unethical debt recovery methods. By bringing digital lenders under the direct supervision of the central bank, the initiative seeks to foster a more sustainable lending environment that protects consumers.
Establishing Clear Guidelines
This regulatory framework is expected to establish clear guidelines for digital lenders, ensuring compliance with ethical standards and promoting responsible lending practices. The Bank of Ghana's move reflects a growing recognition of the need for oversight in the digital finance space as the popularity of online lending continues to rise.
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