Banks Archives - Page 3 of 3

21 Feb

Banks Wrote-Off ¢5.9Bn As Bad Debt In 2022

wontumionlineBusinessBad debt, Banks, BoG, NPLs

Banks operating in Ghana wrote-off about ¢5.9 billion as bad debt in December 2022. According to the Domestic Money Banks Income Statement, this is about 184.2% increase over the previous year. The total provision made were classified as loan losses, depreciation, and others. Though the Bank of Ghana did not give reasons behind this bad debt, it is believed that a difficult economic environment that triggered a high cost of borrowing may be the main reason. According to the Bank of Ghana, the industry’s Non-Performing Loan stock increased from ¢8.2 billion in December 2021 to ¢10.4 billion in December 2022.…

13 Feb

Understanding How Banks Analyse Your Business Loan Application

wontumionlineBusinessBanks

Credit analysis is a complete analysis of the client's overall performance and the specific project to be financed with a loan in order to assess the credit risk, i.e. the creditworthiness of the loan applicant. The credit analysis is a component of the credit process, during which the bank must undertake a detailed examination of the enterprise's operations and the reason for the loan-financed project. Moreover, the processing of the loan application consists of a variety of qualitative and quantitative factors. The first concern is the borrower's previous work, legal standing, management, loan security, competition, etc. The quantitative analysis includes…

09 Feb

DDEP To Weigh On Balance Sheet Of Banks – Fitch Solutions

wontumionlineBusinessBanks, Domestic Debt Exchange Programme, Fitch solutions, Mike Kruninger

The Domestic Debt Exchange Programme is likely to weigh on the balance sheets of banks in Ghana and consequently reduce credit to the private sector, Fitch Solutions has revealed in January 2023 Sub-Saharan Africa Market Update. According to research and market information firm, the reduction in loans particularly to corporate institutions will impact on the real sector of the economy. Senior Country Risk Analyst in charge of Sub-Saharan Africa, Mike Kruninger, said this should be a woke up call to the government. “When talking about access to credit, another factor that I think is really important to mention here is…

31 Jan

BoG Needs To Work Hard On Threats To Solvency Of Banks – Banking Consultant

wontumionlineBusiness, Newsbank of ghana, Banks, BoG, Debt exchange programme, Dr Richmond Atuahene

Banking Consult, Dr. Richmond Atuahene has adviced the Central Bank to put its best foot forward to eliminate the various increased pressures on the liquidity of banks and the threat to their solvency. Dr. Atuahene said the situation if not managed properly will affect the ability of banks to lend to private sectors and small businesses and cause a depletion of regulatory capital. “From where I sit and the calculations in front of me, Bank of Ghana would need to work hard because out of the 23 (banks), I do not know which one would stay if we go by…

24 Jan

Cocoa Bills Default: Bog, COCOBOD Agree To Allow Banks To Use COCOBOD’s Deposits To Pay Retail Customers

wontumionlineBusinessBanks, BoG, Cocoa bills, COCOBOD

The Bank of Ghana, Ghana Cocoa Board (COCOBOD) and the commercial banks have agreed to allow banks to use COCOBOD’s deposits/placements at the banks to cater for retail customers who may not want a rollover of their cocoa bills. This is coming after the BoG initially directed banks not to pay customers their maturing cocoa bills investments, following cash flow challenges facing COCOBOD. In a statement, the Central Bank said it expects that this short-term cash flow challenges facing COCOBOD will be resolved soon to enable the cocoa regulator meet its obligations to investors. “COCOBOD has assured us that the…

05 Jan

Banks, Insurance Companies Lay Off Workers In Anticipation Of A Difficult Year

wontumionlineBusinessBanks, Insurance Companies

3Business can exclusively report that some banks and insurance companies have begun laying-off workers in anticipation of a difficult year for the financial services sector. Two local banks informed some staff they will either be outsourced or laid off, according to a letter seen by 3Business. Checks also revealed a lot of banks have served notice to staff about an impending job cut as the boards look to prune the workforce. The downsizing is on the back of the domestic debt exchange programme which will severely hit banks, insurance and asset management companies as they hold significant portions of government securities.…

14 Oct

Government Should Have Arrested Owners Of Banks BOG Collapsed – Lakulaku

wontumionlineFeatured, News, TrendingBanks, Ghana, Lakulaku

A communicator of the New Patriotic Party(NPP), Abubakar Sulemana popularly known as Lakulaku has said government should have ordered for the arrest of the owners of the banks that were collapsed due to financial mismanagement. Speaking on Movement In The Morning Show with Kwaku Dawuro, Lakulaku debunked criticisms against the governor of Bank of Ghana (BOG) which according to claims has contributed to Ghana’s current financial mishap. Speaking Lakulaku said that ‘’the governor is one of the bold governor I have ever come across. He should have been the governor of bank of Ghana in 2008 but the political narrative…

27 Sep

Banks Deny Profiteering From Lending Rate Claims

wontumionlineBusinessbank of ghana, Banks

Chief Executive Officer of the Ghana Association of Banks (GAB), John Awuah, has described as ‘impossible’ the assertion that banks in the country could be benefitting from the difference between respective lending rates by borrowing at the lower rate and on-lending to the market at the higher rate, citing mechanisms put in place by the central bank to forestall such occurrences. He said this in response to assertions by the Institute for Economic Affairs (IEA) in its commentary on the upcoming Monetary Policy Committee (MPC) of the Bank of Ghana (BoG, wherein it noted arbitrage between the Monetary Policy Rate…

07 Sep

BoG To Impose Sanctions On Banks That Breach Digital Financial Services Guidelines

wontumionlineBusinessBanks, BoG, Digital financial services, SDIs

The Bank of Ghana may impose on banks or Specialized Deposit-Taking Institutions, an administrative sanction of not more than 10,000 penalty units for breach of new guidelines on digital financial services. In the case of continuous breach, an additional penalty of not more 50 penalty units shall be imposed for each day the breach continues. This is in accordance with section 92 of Act 930. Again, in accordance with section 44 of the Non-Bank Financial Institutions Act, 2008 (Act 774), the Central Bank may impose on a non-bank financial institution, an administrative sanction of not more than 10,000 penalty units…