Tag: NPLs
-
Gov’t, poor credit practices cause of high NPLs – Economists
Some Economists have attributed the continuous rise in Non-Performing Loans (NPLs) in the banking sector to poor credit risk practices on the part of banks. In their opinion, credit to businesses in the country will continue to be high if the banks fail to do due diligence when giving out credit. The comments follow the…
-
Lending rates to remain high despite drop in reference rate
Lending rates of commercial banks may not be declining anytime soon despite the change in the formula of calculating the lending rates of banks. That is the position of Economist, Professor Godfred Bokpin. His comments come despite a marginal reduction in the Bank of Ghana’s new reference rate for May. Meanwhile business associations have lauded…
-
BoG reduces Ghana reference rate to 16.74% in May
The Bank of Ghana’s new Ghana Reference Rate for May 2018 is 16.74 percent. The rate is the reference by which commercial banks will set their interests on loans granted to customers at least for this month. The figure is lower compared to that quoted for April which stood at 16.82 percent. Introduced in April…
-
Deposits still major source of funds for banks – BoG report
Customer deposits still remain a major source of funding for commercial banks. As a result, commercial banks also bear greater responsibility to their customers in earning interests on such deposits. The latest banking sector report by the Bank of Ghana shows that deposits accounted for 62.5 percent of the banking industry’s assets as at December 2017.…
-
Local businesses worst loan defaulters in 2017 – BoG report
Local private businesses were the worst culprits in repaying loans taken from commercial banks for 2017. According to the Bank of Ghana, the businesses constituted 80.6 percent of loan default attributable to the private sector for last year compared to the estimated 7.9 percent of loan default attributable to the private sector, recorded by foreign…
-
CAL Bank records GH¢145m profit in 2017
CAL bank has posted a profit after tax of 145.2 million cedis for 2017. This is a significant improvement over the previous year’s figure of 7.2 million cedis. Despite this, the bank still acknowledges the impact of the legacy debts in the energy sector on its loan books. In the first of Citi Business News’…
-
Banks to lose hold on interest rates
The Bank of Ghana is hoping that banks will soon reduce their interest rates on loans to reflect the continuous drop in the policy rate. The central bank believes that the development should also help correct the balance sheets of banks by reducing the Non-Performing Loans. This was among the key issues raised at a…
-
Roadshow for GH¢10bn energy bond starts today
Government will today (October 19, 2017) embark on a roadshow for the energy sector bond to be used to clear the energy sector debt. Today’s roadshow, to be carried out in London, is the first of two roadshows to be conducted ahead of the issuing of the bond.. The bond is also expected to be…
-
Banks’ tight loans stance reduces profits by 40% – BoG report
Commercial banks’ decision to reduce their levels of loans and advances to businesses have rather affected their profitability. As a result of this position, the profits of commercial banks had dropped by 40 percent as at June 2017. Figures from the Bank of Ghana on the banking sector indicate that the profits of commercial banks…
-
Banks’ NPLs to drop with govt intervention – Ken Ofori Atta
Finance Minister Ken Ofori Atta has described as worrying the high non-performing loans recorded in the banking sector. Although the sector recorded strong performance in asset growth of 27.3% in May 2017 as against the 17.7% recorded in May 2016, it continues to face the threat of high non-performing loans. “As at April 2017, the banking…