The Governor of the Bank of Ghana, Dr.Johnson Pandit Asiamah has urged banks to build robust credit facility systems aimed at reducing the rate of Nono performing loans in the sector.
In a meeting with the Head of Banks post the 130th MPC meeting, Dr.Asiamah stated that credit risk and non performing loans continue are still issues of great concern in the sector.
“Nevertheless, we must not become complacent. Elevated credit risks remain a concern, and banks must continue to strengthen credit underwriting standards, improve recovery processes, and comply fully with regulatory requirements aimed at reducing non-performing loans to tolerable prudential targets.”Dr.Asiamah stated
The Governor also urged banks to remember their fundamental role of financial intermediation and capitalize on the macroeconomic gains achieved to innovate and meet the financial needs of businesses and households.
“As we sustain stable macroeconomic conditions, let me reiterate that the banking industry must increasingly turn its attention to its fundamental role of financial intermediation and support for productive economic activity.
I therefore urge banks to leverage the gains from macroeconomic stability, declining interest rates,and advances in financial technology to develop innovative products that meet the evolving needsof households and businesses.” He added
Dr Johnson Pandit Asiamah also announced plans of a possible collaboration with banks to “strengthen channels that convert remittance inflows into productive investments.”
Explaining that this when done will go a long way to deepen the financial market, strengthen economic resilience and support sustainable growth.
“By creating innovative investment-linked remittance products, we can mobilise a larger share of these flows toward business expansion, infrastructure development, and long-term capital formation. Such efforts will not only deepen our financial markets but also strengthen economic resilience and support sustainable growth.” The governor added
Dr.Asiamah also called on banks to “ formalise robust policies governing third-party collateral, strengthen due diligence procedures, enforce strict verification standards, address control weaknesses, and take decisive disciplinary action against staff involved in misconduct” to address the ongoing
The Governor then expressed the central bank’s commitment to working closely with all stakeholders to build a resilient, inclusive, and globally competitive financial sector that serves the aspirations of the Ghanaian people.
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