By Jibril Abdul Mumuni
Accra, June 17, GNA – The Bank of Ghana (BoG) has cautioned banks against the rising use of forged land documents to secure loans.
Dr Johnson Pandit Asiama, BoG Governor, issued the warning at a meeting with heads of banks in Accra.
He said the central bank had identified troubling cases where individuals used fake land title documents and forged consent letters to apply for loans.
Dr Asiama explained that in some instances, properties were pledged as collateral without the knowledge of their rightful owners.
“When banks are unable to recover loans because the collateral is not genuine, it weakens their financial position and reduces public trust,” he said.
The Governor urged banks to strengthen checks on documents, improve verification systems and ensure that all collateral used for loans was genuine and properly verified.
He also called for clear rules on handling third-party collateral and firm action against staff involved in fraudulent activities.
Dr Asiama noted that although the banking sector was improving, risks related to lending remained, particularly where proper checks were not followed.
He said the BoG would continue to work with banks to strengthen supervision and protect the financial system, stressing that strong loan processes and effective verification were essential to maintaining trust and stability in the banking sector.
GNA
Edited by Kenneth Sackey