The Bank of Ghana has allayed fears that its new directive on loan write-offs will have a negative impact on the banking
The Bank of Ghana last month issued a directive to commercial banks to write-off bad loans that are recorded as a loss
within 180 days, if it is not recovered.
A number of banks have raised red flags about the issue indicating it will have dire consequences for the banking system.
But the Governor of the central bank, Dr Henry Wampah says the move is expected to strengthen the whole banking industry
rather than cripple it.
Dr Henry Wampah however adds that the directive does mean banks should not continue to pursue the loan if it is written
By: Anim Kwaku Boadu/citifmonline.com/Ghana