Chartered Institute of Credit ManagementChartered Institute of Credit Management
Chartered Institute of Credit Management

Professor Kwame Bosiako Omane-Antwi, the President of the Chartered Institute of Credit Management, Ghana (CICMG) says credit management was critical to institutions as it determined how smoothly the wheels of the economy was run.

He said the need for professional credit managers was ever more pertinent now when most institutions, especially financial institutions had a high demand for credit professionals.

Speaking at the Launch of the Institute’s syllabus and investiture ceremony held in Accra, Prof. Omane-Antwi said the Institute was poised to train high calibre credit management professionals to take up credit management in country.

Prof Omane-Antwi blamed the financial hiccups often encountered by some state and private financial bodies on poor credit management strategies employed by organisations.

He said it was prudent for all professionals working in the financial sector to join professional and training bodies such as the CICMG to be schooled on effective credit management.

Prof Omane-Antwi, who is also the Vice President and Dean of students at the Pentecost University College, said “the main challenge facing Ghana is corruption” which he believed was partly caused by weak credit risk management.

He stated that Ghana could boost its economic well-being through harnessing her human capital and laying out professional benchmarks on which all professionals would discharge their professional duties, saying not everyone could be considered as professional credit managers.

“Credit management is a specialised field. Work involving credit management is best carried out by people who have studied credit management comprehensively,” he said.

Prof Omane-Antwi said people who want to work in organisations as credit managers should enrol in credit management courses “as a matter of urgency” with the CICMG, explaining that the institute had the requisite capacity to groom them for the field.

Dr Charles Akuetteh, General Manager of Capital Bank, who gave the keynote address at the ceremony, said credit management was indispensable to the administration of every financial institution, as it caused financial challenges for organisations if not well executed.

He attributed the rising rates of non-performing loans (NPLs) in the banking sector to weak credit management systems, owing from giving out credit to bad customers who were usually ready to take on high interest rates, communication breakdowns, contingencies, competition and carelessness on the side of the receiver, which resulted in failure to retrieve the money.

“In the banking books, the default rate is growing, it used to be below five per cent which is the acceptable figure we practised with, but today, some institutions have more than 30 per cent of their facilities in bad loans,” he said.

He urged credit management professionals, especially the newly admitted Associate members of the CICMG, to ensure that they learnt and applied best practices on the job.

Dr Akuetteh also advised them to ensure that they stayed abreast with their clients businesses and cash-flows to ensure that they were able to pay back the credit they received.

GNA/www.newsghana.com.gh