Tag: Non performing loans
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Savings and loans companies receive assurance from BoG to resolve NPLs
Savings and loans companies in the country have received assurances from the central bank that steps will be taken to resolve difficulties with Non-Performing Loans (NPLs) and high interest rates. The Central Bank claims to have seen the difficulties facing the sector’s operators. As the bank continues to work to ensure financial stability, Mr. Osei…
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NPLs likely to reduce following improvement in economy – Banking consultant
A banking consultant, Nana Otuo Acheampong is confident that the recent rise in the percentage of non-performing loans in the banking industry will be a temporary phenomenon. According to the Banking Sector Development report for March by the Bank of Ghana, the end-February 2021 NPL ratio of 15.3 percent was marginally higher than the year-end…
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NPLs of Ghanaian banks may rise after COVID-19 pandemic – BoG Governor
Governor of the Bank of Ghana Dr. Ernest Addison says he is mindful of the fact that in the aftermath of the Coronavirus pandemic, non-performing loans in the country may rise beyond the current stable levels. An analysis of the Summary of Macroeconomic and Financial Data from the Bank of Ghana released in November shows…
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Deposits of commercial banks grow steadily despite impact of COVID-19 – BoG
The latest Summary of Macroeconomic and Financial Data from the Bank of Ghana shows that the growth rate in commercial banks’ deposits has been positive throughout the year despite the impact of the COVID-19 pandemic on activities of businesses and individual households. Total banking deposits increased by 27% year-on-year, from GHS78.9 billion in October 2019…
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NPLs should drop to single digits in 2021 and beyond – Banking consultant
Banking consultant Nana Otuo Acheampong has expressed confidence in seeing the percentage of non-performing loans in Ghana’s banking sector, drop to single digits beyond 2020. His comment follows the announcement by credit rating agency, Fitch Ratings that, despite non-performing loans falling to 14 percent in 2019, from 22 percent two years prior, they will remain…
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Lending rates dropping but not fast enough – MSMEs
Despite the Monetary Policy Rate (MPR) remaining at 14.5 percent for the better part of 2020, average lending rates of commercial banks have not dropped low enough for many stakeholders. According to the Summary of Economic and Financial Data released by the Bank of Ghana in May this year, Commercial Banks started the year lending…
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Police interrogate loan defaulters of Bank of Africa
The Banking Sector Report released by the Bank of Ghana indicates that the total value of Non-Performing Loans has reduced considerably to about GH¢7 billion by end of June this year. The figure stood at 23.5 percent in April 2018, but saw a sharp decline to 18.9 percent in April 2019. Even though there is…
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Bank of Ghana confident of bringing down banks’ bad loans to about 10 percent
The Bank of Ghana has announced that it has reached an agreement with universal banks over a debt write-off policy that ensures the high non-performing loans ratio in the country is brought down to about 10 percent. The central bank is hopeful that the move will reduce the impact of high NPLs on the books…
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Delays in resolving financial issues in court affecting banks—Bankers Association
The Ghana Bankers Association is calling on the Judicial Service to expedite the adjudication of financial cases. According to the association, slow judicial processes have partly contributed to the high non-performing loans in the country. The Ghana Bankers Association laments that one of the major factors that led to the challenges in the banking sector,…
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Private sector contributes 97% of banks’ NPLs in 2019 first quarter
The first quarter banking sector report published by the Bank of Ghana has shown that the private sector accounted for 96.9% of the total Non-Performing Loans (NPLs) within the industry. By this, the share of loans gone bad within the banking sector not attributable to the private sector represented 3.1%. According to the banking sector…