The Chief Executive Officer of Beige Capital, Mike Nyinaku has called on the Bank of Ghana (BoG) to set up a national credit record database to help track the credit history of individuals in the country.

The move, he said would empower the banks to pursue the record of borrowers responsible repayment of debts and provide lending institutions the opportunity of knowing the credit-worthiness of their clients.

Mr Nyinaku made the call at the maiden international conference on business management and entrepreneurial development organised by the University of Professional Studies, Accra.

The conference was on the theme: “Management of SMEs [Small and Medium Enterprises]: issues, challenges and opportunities.”

The Beige Capital boss applauded government efforts at setting up the collateral registry at the Central Bank to properly document collaterals backed by efficient information data base.

“I think setting up the collateral registry at Bank of Ghana is one of the laudable things that have happened to the financial and business sector in recent times,” he said.

However, Mr Nyinaku noted that, “we must move a step ahead as a nation in establishing a national credit record database of all individuals in the country.”

He contended that with credit data base government financing assistance to SMEs could also come in handy where the financial market has failed or become inaccessible.

Market watchers say SMEs form about 92 per cent of registered companies in Ghana and contribute significantly to employment creation and sustainable development.

About 85 per cent of jobs in the country are being created by the SMEs and they also contribute 70 per cent to the nation’s Gross Domestic Product, according to Nyinaku.

“When the SME sector is booming, other dependent industries such as management consulting, tax preparation, auditing, advertising and banking also thrives” he added.

Notwithstanding, he said, SMEs borrow at exorbitant cost and are often dwarfed or crowded out by the government and big corporations in accessing funds, leading to many going to SME banking.

The development, Mr Nyinaku noted, was an innovative way the financial market has responded to the problems facing the sector, but added that, the way to solve the problem was for government to reduce its dependency on the commercial banks.

He also pressed on government to offer tax incentives to the financial institutions that were willing to give very flexible and favourable credit to the SMEs despite the increased risk.