Banks

Banks Must Take Quality Customer Service Delivery Seriously
09 Oct

Banks Must Take Quality Customer Service Delivery Seriously

Wontumi1Business,
THE 2023 Ghana Consumer Satisfaction Index (GH-CSI) report released by the Chartered Institute of Marketers Ghana (CIMG) has indicated that service quality in the consumer banking sector has dipped by six points. Advertisement From 95% in 2022, the report based on research conducted among customers of various banks in the country saw a sharp decline to 89%. Customer satisfaction for consumer banking, on the other hand, suffered a marginal decline from 95% in 2022 to 93% last year while Customer Loyalty for Consumer Banking also reduced from 81% in 2022 to 74% in 2023. Meanwhile, service quality delivery and customer…
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Interest On Business Loans Hitting 50%, With No Bank Offering Rates Below 30%
21 May

Interest On Business Loans Hitting 50%, With No Bank Offering Rates Below 30%

Wontumi1Business,
The cost of credit to companies in Ghana remains elevated, with all banks in the country unable to offer corporate loans at rates below 30%. Firms seeking loans from banks are contending with rates as high as about 50%. This is compounded by the double whammy of the threats these high rates pose to the solvency of banks through high non-performing loans. Per the latest Bank of Ghana report (March 2024) on the annualized percentage rate for loans to corporates, it showed that no bank was lending to companies at rates less than 30%. Whether the loan was for a…
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Banks Wrote-Off GH¢4.33Bn As Bad Debt In 2023
11 Mar

Banks Wrote-Off GH¢4.33Bn As Bad Debt In 2023

Wontumi1Business,
Banks in Ghana wrote off GH¢4.33 billion as bad debt in 2023, a 79.2% reduction over that of 2022. The bad debt was classified as loan losses, depreciation & others. In 2023, the total bad debt was estimated at GH¢20.8 billion. According to the Bank of Ghana, banks reported lower impairments on financial assets in 2023. Total provisions and impairments contracted by 79.2% in December 2023, after increasing sharply in December 2022 on account of the huge impairments on restructured bonds. Meanwhile, asset quality risks were elevated in December 2023, reflecting the lingering impact of the 2022 macroeconomic challenges on…
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BoG Commences Development Of Framework To Assess Sustainability Of Banks – Governor
03 Oct

BoG Commences Development Of Framework To Assess Sustainability Of Banks – Governor

Wontumi1Business, , ,
The Bank of Ghana has commenced the development of a Business Model and Viability Analysis (BMVA) Framework to enhance its supervisory practices for assessing the sustainability of banks’ business models. BMVA allows supervisors to identify banks’ vulnerabilities at an early stage and ensure safety and soundness. Speaking at the 40th Annual General Meeting of the Ghana Association of Banks, the Governor of the Bank of Ghana, Dr. Ernest Addison, said his outfit is focused on assessing the implications of banks’ strategic decisions and its alignment with their risk appetites, following the adverse impact of the Domestic Debt Exchange Programme. Due to…
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8 Banks Accounted For 67% Of Banking Industry Exposure To DDEP – 2023 Ghana Banking Survey
09 Aug

8 Banks Accounted For 67% Of Banking Industry Exposure To DDEP – 2023 Ghana Banking Survey

Wontumi1Business, ,
Eight banks accounted for 67% of the banking industry exposure to the Domestic Debt Exchange Programme. This confirmed Joy Business story in November 2023 that eight banks were highly exposed to the Government of Ghana bonds. According to the 2023 Ghana Banking Survey by accounting professional, PwC, 72% of the impairment charge in 2022 were attributed to these banks. GCB, Consolidated Bank Ghana, Ecobank Bank Ghana and Absa Bank Ghana recorded the highest impairment charges of ¢1.81 billion, ¢1.77 billion, ¢1.62 billion and ¢1.61 billion respectively. However, the banks most impacted by impairment charge as a proportion of their investment…
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Banks Expected To Start Using Armoured Bullion Vans From July 1 – President Of ABOG
23 Jun

Banks Expected To Start Using Armoured Bullion Vans From July 1 – President Of ABOG

Wontumi1Business,
The President of the Association of Bullion Operators Ghana (ABOG), Alhaji Iddi Sumaila has said that banks in Ghana are expected to start using armoured bullion vans for cash-in-transit from July 1. He however reveals that some of the banks are yet to finalize the agreement with the ABOG to that effect. “By 1st of July we will see banks using armored vehicles/bullion vans. However, other banks have not finalized the agreement with us,” he told Johnnie Hughes on the Sunrise show on 3FM Friday June 23 regarding the robbery attack on a bullion van at Ablekuma in Accra on…
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Encourage Aquisition, Mergers Of Banks And NBFIs If Needed – IMF Tells Government
05 Jun

Encourage Aquisition, Mergers Of Banks And NBFIs If Needed – IMF Tells Government

Wontumi1Business, , ,
The International Monetary Fund (IMF) has proffered three policies including acquisitions and mergers of banks and non-banks to mitigate the possible systematic financial instability in Ghana. These policies captured under the Risk Assessment Matrix contained in the recent IMF country report on Ghana, aim to mitigate risks and ensure the stability of the banking and Non-Bank Financial Institutions (NBFIs). The first policy suggests strengthening financial safety nets and closely monitoring the liquidity and asset quality of banks and NBFIs. The second policy involves designing an appropriate strategy to recapitalize banks and NBFIs. Lastly, the IMF encourages acquisitions and mergers as…
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Banks To Undergo Corrective Measures By September 2023
30 May

Banks To Undergo Corrective Measures By September 2023

Wontumi2Business
One of the structural benchmark actions imposed by the IMF on Ghana is the Bank of Ghana to approve the plans of all banks that were negotiated during the previous quarters. These plans aimed to rebuild capital buffers and initiate corrective actions on institutions whose plans were not considered credible. The objective of this action was to promote financial stability and bolster the financial sector’s contribution to medium-term growth by the end of September 2023. The analysis of the IMF shows that Ghana’s banking sector faced challenges related to capital adequacy and overall stability. The plans negotiated with the banks…
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BoG Received 983 Complaints From Customers Of Banks, Others In 2022; 36% Complaints Unresolved
24 May

BoG Received 983 Complaints From Customers Of Banks, Others In 2022; 36% Complaints Unresolved

Wontumi1Business, , , ,
The Bank of Ghana received a total of 983 complaints from customers of banks, Specialised Deposit-Taking Institutions, Non-bank financial institutions and Payment Service Providers in 2022, a 15% increase over that of 2021. The rise was largely attributed to the increase in awareness of the general public and the confidence reposed in the Bank of Ghana to use its supervisory authority to adjudicate and resolve complaints. Out of the 983 complaints received in 2022, 626 complaints (64%) were resolved and 357 complaints (36%) remained unresolved. This is compared to 2021, where 857 complaints were received with 556 complaints (65%) resolved,…
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Banking Industry To Face Crisis If Government Fails To Secure $1.5Bn Stability Fund By July – US-Based Economist
11 May

Banking Industry To Face Crisis If Government Fails To Secure $1.5Bn Stability Fund By July – US-Based Economist

Wontumi1Business, ,
Economist at Louisiana Economic Development in the USA, Dr. Sa-ad Iddrisu, has revealed a looming banking crisis in Ghana if the government is unable to get the $1.5 billion dollar Stability Fund by July 2023. According to him, if government is not able to get the funds by July this year, some banks will start collapsing since they won’t be able to pay their workers and keep their operations running. He argues, already, some banks have recorded huge losses, therefore the lack of liquidity support from the Stability Fund will leave them with the option to fold up or reduce…
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