Tag: NPLs
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Banks’ loans to private sector increase by 45% in April – BoG report
Banks have begun easing out their stance on credit to the private sector following declining interest rates. The Bank of Ghana’s latest Banking sector report reveals that the credit allocation by banks increased from April 2016 to April 2017. Net loans and advances to the private sector by the commercial banks (which is total loans to customers,…
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High NPLs to tighten credit to the private sector
Financial sector analysts are predicting a further contraction in credit to the private sector following their high contribution to the Non Performing Loans (NPL) of banks. They argue that the development which threatens the banking industry is also likely to freeze the growth of Ghana’s banking sector. According to the Executive Director of the Policy…
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Private sector accounts for 98% of banks’ NPLs – BoG report
The banking industry’s stock of Non-Performing Loans (NPLs), increased by 24.5 percent between April 2016 and April 2017, the Bank of Ghana’s latest banking sector report has shown. The industry’s NPL went up from 5.74 billion cedis in April 2016 to 7.15 billion cedis in April 2017. According to the report, the private sector accounted…
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Banks demand payment plan for BDC debts
Banks that are exposed to the Bulk Oil Distribution Companies (BDCs’) debts want government to draw out a plan to facilitate payments from the Energy Sector Levies Act [ESLA]. They argue that the plan will facilitate payments and help them make the necessary provisions accordingly. Explaining the impact of the absence of a detailed plan…
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NPLs reduce Access Bank’s 2016 profits
Access Bank Ghana, a subsidiary of Access Bank Plc in Nigeria, made a profit of 41.93 million cedis in 2016. This was down by about 48 percent compared to the profits made in 2015 which was 80.41 million cedis. In 2016, Access Bank’s total income amounted to 272.62 million cedis from the 267.12 million cedis…
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GCB Bank’s profits rise to GH¢299m
GCB Bank has posted a 22 percent rise in profit in 2016 compared to the profit recorded in 2015. The bank’s profit for the period increased from 244.7 million cedis to 299 million cedis between 2015 and 2016. The rise in GCB Bank’s profits for 2016 comes after recording a drop the previous year. In…
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NPLs erode HFC Bank’s 2016 profits
HFC bank’s 2016 figures show that the bank’s total deposit grew by 31%. The figure increased from 1.18 billion cedis in 2015 to 1.55 billion cedis in 2016. This also outperformed the industry’s average of 25%. The bank’s assets also increased to 1.89 billion cedis within the twelve months period. However, provisioning for Non Performing…
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BoG predicts improved balance sheets for banks in 2017
The Head of Banking Supervision at the Bank of Ghana, Raymond Amanfu, has predicted of an improved performance of the banking sector in 2017. According to him, the relative stability in some macro-economic indicators should help banks improve their balance sheets this year. “As a supervisor that is my hope, the issue of the bad…
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Bankers optimistic of drop in NPLs by end of 2016
The impact of the high Non-Performing Loans (NPLs) on the books of commercial banks is set to reduce by the close of this year. At least this is the confidence expressed by some managers of banks. The latest financial stability report by the Bank of Ghana showed that the NPL’s of commercial banks have increased…
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8 banks on the verge of collapse – Bawumia
A former deputy Governor of the Bank of Ghana and the running mate of the NPP Dr. Mahamudu Bawumia has warned that eight banks in Ghana risk collapse due to the continuous hikes of bad loans on their books. “The asset quality review of banks, conducted in 2015, shows significant vulnerability of banks to current…