No Result
View All Result
Tuesday, February 7, 2023
Citi Business News
  • Home
  • News
    • All
    • Agriculture
    • Economy
    • General
    • Government
    • Local Economy
    • Top Stories

    5 important things to know about the African Continental Free Trade Area agreement

    Idris Elba adds Ghana to the list of African countries he wants to partner with

    Twitter is reportedly planning to charge businesses $1,000 per month to keep gold verified checks

    Pensioners to picket at Finance Ministry over DDE

    Ghana begins to locally manufacture its own bullion vans to combat robbery

    MTN’s aYo insurance covers over 8 million Ghanaians in 5 years

    AGI urges Govt. to effect favorable business policies

    Gold-for-oil: Govt spent $40m on first consignment – NPA

    Encourage China to support Ghana’s debt restructuring – Akufo-Addo to Germany

  • Business
    • All
    • Agribusiness
    • Banking And Finance
    • Manufacturing
    • Markets
    • Mining
    • Oil And Gas
    • Real Estate
    • Tourism
    • Transport

    Nigeria ranks number one globally for cryptocurrency usage and ownership

    Gold-for-oil: Govt spent $40m on first consignment – NPA

    Come clean on gold-for-oil ‘fiasco’ – COPEC to govt

    Ghana paid cash for 40,000 tons of oil instead of gold – Egyapa Mercer confirms

    $130bn and $170bn needed annually to bridge Africa’s infrastructural gap – Bawumia

    Government and Association of Banks reach agreement on DDEP

    DDE: Banks secure 5% coupon for 2023; other revisions

    Cocoa bill payment; BoG, COCOBOD others agree to roll over maturing investments

    AfriCatalyst to host conference on use of Special Drawing Rights to accelerate economic transformation

  • TECHNOLOGY

    Twitter is reportedly planning to charge businesses $1,000 per month to keep gold verified checks

    Ghana withdraws $672m back-tax demand from MTN Group

    MTN to fight $773m tax bill from government

    Telcos to implement 1% E-Levy charge from today

    Huawei Equips 500 Traders in FinTech

    Africans urged to bolster adoption of Bitcoins

    What does 2023 hold? Predictions in payments for the year ahead for Africa

    Meta considered building a Twitter competitor to capitalize on Elon Musk’s ‘crisis’ at company

    E-commerce in Ghana – statistics & facts

  • INTERNATIONAL
    • All
    • Africa
    • Asia
    • Europe
    • Middle East
    • US

    5 important things to know about the African Continental Free Trade Area agreement

    $130bn and $170bn needed annually to bridge Africa’s infrastructural gap – Bawumia

    Feed Africa Summit: African Development Bank to commit $10bn to make continent breadbasket of the world

    Nigeria’s national debt hits an all time as the country struggles with repayment

    What does 2023 hold? Predictions in payments for the year ahead for Africa

    Nigeria set to stop importation of refined oil and refine its own oil by 2023

    EIU analysts forecast grim economic outlook for Africa in 2023

    AUDA-NEPAD holds workshop for Youth and Media on AU Year of Nutrition

    Agribusiness entrepreneurs must take advantage of AfCFTA – ADB MD.

  • FEATURES
  • Videos
Citi Business News
  • Home
  • News
    • All
    • Agriculture
    • Economy
    • General
    • Government
    • Local Economy
    • Top Stories

    5 important things to know about the African Continental Free Trade Area agreement

    Idris Elba adds Ghana to the list of African countries he wants to partner with

    Twitter is reportedly planning to charge businesses $1,000 per month to keep gold verified checks

    Pensioners to picket at Finance Ministry over DDE

    Ghana begins to locally manufacture its own bullion vans to combat robbery

    MTN’s aYo insurance covers over 8 million Ghanaians in 5 years

    AGI urges Govt. to effect favorable business policies

    Gold-for-oil: Govt spent $40m on first consignment – NPA

    Encourage China to support Ghana’s debt restructuring – Akufo-Addo to Germany

  • Business
    • All
    • Agribusiness
    • Banking And Finance
    • Manufacturing
    • Markets
    • Mining
    • Oil And Gas
    • Real Estate
    • Tourism
    • Transport

    Nigeria ranks number one globally for cryptocurrency usage and ownership

    Gold-for-oil: Govt spent $40m on first consignment – NPA

    Come clean on gold-for-oil ‘fiasco’ – COPEC to govt

    Ghana paid cash for 40,000 tons of oil instead of gold – Egyapa Mercer confirms

    $130bn and $170bn needed annually to bridge Africa’s infrastructural gap – Bawumia

    Government and Association of Banks reach agreement on DDEP

    DDE: Banks secure 5% coupon for 2023; other revisions

    Cocoa bill payment; BoG, COCOBOD others agree to roll over maturing investments

    AfriCatalyst to host conference on use of Special Drawing Rights to accelerate economic transformation

  • TECHNOLOGY

    Twitter is reportedly planning to charge businesses $1,000 per month to keep gold verified checks

    Ghana withdraws $672m back-tax demand from MTN Group

    MTN to fight $773m tax bill from government

    Telcos to implement 1% E-Levy charge from today

    Huawei Equips 500 Traders in FinTech

    Africans urged to bolster adoption of Bitcoins

    What does 2023 hold? Predictions in payments for the year ahead for Africa

    Meta considered building a Twitter competitor to capitalize on Elon Musk’s ‘crisis’ at company

    E-commerce in Ghana – statistics & facts

  • INTERNATIONAL
    • All
    • Africa
    • Asia
    • Europe
    • Middle East
    • US

    5 important things to know about the African Continental Free Trade Area agreement

    $130bn and $170bn needed annually to bridge Africa’s infrastructural gap – Bawumia

    Feed Africa Summit: African Development Bank to commit $10bn to make continent breadbasket of the world

    Nigeria’s national debt hits an all time as the country struggles with repayment

    What does 2023 hold? Predictions in payments for the year ahead for Africa

    Nigeria set to stop importation of refined oil and refine its own oil by 2023

    EIU analysts forecast grim economic outlook for Africa in 2023

    AUDA-NEPAD holds workshop for Youth and Media on AU Year of Nutrition

    Agribusiness entrepreneurs must take advantage of AfCFTA – ADB MD.

  • FEATURES
  • Videos
No Result
View All Result
Citi Business News
No Result
View All Result

Govt’s incessant borrowing threatens banking industry’s stability – Bawumia

bycitibusinessnews
March 24, 2015
in Banking And Finance, Business, Top Stories
Dr. Mahamadu Bawumia

Dr. Mahamadu Bawumia

Share on FacebookShare on TwitterShare on Whatsapp

Economist and the New Patriotic Party’s Vice Presidential Candidate Dr. Mahamadu Bawumia has warned that Ghana’s banking industry would suffer a major blow if government continues its borrowing spree.

[contextly_sidebar id=”WLPAB9DxmFu8V3YWhIvVF08rOnUwyihh”]According to Dr. Mahamadu Bawumia despite being described as a generally stable sector the banking industry is still vulnerable and government’s huge borrowing as well as the country’s current weak economy threatens the sector’s stability.

Government borrowed 24.2 billion cedis in 2014 alone pushing Ghana’s debt to 76.1 billion cedis by the close of last year up from the 51.9 billion cedis it recorded in 2013.

ADVERTISEMENT

This figure is expected to increase significantly as governments intends to borrow more this year.

Speaking at a lecture dubbed “The IMF Bailout: Will the Anchor Hold?” at the Central University College, Dr Bawumia warned that ‘the entire financial system is at risk from rising non-performing loans (NPLs)’.
According to him ‘Standard Chartered Bank for example, a well-managed bank, has seen its NPLs increase from 15.5% in 2013 to 27.3% in 2014.

According to Stanchart’s financial statement for 2014, “The increase is attributable to exposure of some of our customers to payment delays from government”.

Dr Bawumia warns that ‘the NPLs in the non-Bank sector in particular is becoming explosive and the Bank of Ghana has signaled that it may soon review capital requirements for the entire system’.

The Bank of Ghana in its financial stability report for February, 2015 warned that banks need to put in place additional effort to strengthen their risk management practices and also recover overdue loans.

It however also stated that ‘the banking sector remained strong on account of asset quality, liquidity, solvency and earnings. Despite the macroeconomic challenges of 2014, the sector’s non-performing loans recovered and declined during the second half of the year. Similarly, liquidity positions of the sector also improved despite marginal worsening in operational efficiency on account of high cost of operations’.

–
By: Vivian Kai Lokko/citifmonline.com/Ghana

Related Posts

5 important things to know about the African Continental Free Trade Area agreement

bycitibusinessnews

The African Continental Free Trade Area (AfCFTA) which unites the 55 members of the African Union (AU) and eight Regional...

Read more

Nigeria ranks number one globally for cryptocurrency usage and ownership

Twitter is reportedly planning to charge businesses $1,000 per month to keep gold verified checks

Pensioners to picket at Finance Ministry over DDE

Ghana begins to locally manufacture its own bullion vans to combat robbery

AGI urges Govt. to effect favorable business policies

Gold-for-oil: Govt spent $40m on first consignment – NPA

Next Post

Fly 540 staff drag airline to court over unpaid severance package

Video on Demand: Business Weekly

ADVERTISEMENT
Citi Business News

© 2019 Citi Business News - CitiBusinessNews.com by CNR Digital.

Navigate Site

  • Home
  • News
  • Business
  • TECHNOLOGY
  • INTERNATIONAL
  • FEATURES
  • Videos

Follow Us

No Result
View All Result
  • Home
  • News
  • Business
  • TECHNOLOGY
  • INTERNATIONAL
  • FEATURES
  • Videos

© 2019 Citi Business News - CitiBusinessNews.com by CNR Digital.