AfriPulse
The Governor of the Bank of Ghana, Dr Johnson Asiama, says the non-performing loans ratio within Ghana’s banking sector is expected to decline further as new regulatory guidelines begin to take effect.
Speaking after the conclusion of the central bank’s 130th Monetary Policy Committee meeting in Accra, Dr. Asiama said recent policy interventions and stricter supervisory measures introduced by the Bank of Ghana are already helping to strengthen asset quality across commercial banks.
“We expect that the non-performing loans ratio will go down further for commercial banks due to some of the guidelines that have been put in place,” he stated.
According to him, the central bank remains committed to ensuring financial sector stability through enhanced risk management frameworks and improved credit administration systems within the banking industry.
“The banking sector remains broadly stable, well-capitalised and liquid despite the challenges experienced over the past few years,” Dr. Asiama added.
He explained that the implementation of new prudential guidelines is expected to support banks in reducing bad loans while improving overall balance sheet performance.
“We will continue to strengthen supervision and ensure that banks comply fully with the regulatory framework to safeguard confidence in the financial system,” he stressed.
The Governor noted that the banking sector continues to show signs of resilience as economic conditions improve, adding that the central bank will continue to closely monitor developments within the industry.
Non-performing loans remain a key indicator used to assess the health of the banking sector, with lower NPL ratios generally signalling improved loan recovery.
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Source: TheGhanaReport | Read the Full Story…
