- Banks in Ghana are well-positioned to withstand shocks from the outbreak of COVID-19, the Bank of Ghana has declared
- It added that this was the outcome of recent stress tests conducted on banks in Ghana
- The Bank of Ghana added that the capital adequacy ratio is well above the revised regulatory floor of 11.5%
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The Bank of Ghana (BoG) has expressed optimism in the ability of banks in Ghana to withstand credit shocks caused by the outbreak of the coronavirus.
According to the Governor of the Bank of Ghana, Dr. Ernest Addison, recent stress tests conducted show that the banks were strong, resilient and well-positioned to withstand mild to moderate liquidity and credit shocks.
He added that the capital adequacy ratio is well above the revised regulatory floor of 11.5%.
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The Governor went on to say that the industry’s non-performing loan ratio had, however, inched up during the quarter, showing the emerging impact of the pandemic on low credit growth and higher loan provisioning.
Per a graphic.com.gh report, he added that “so far, banks are also responding positively to the recently announced policy initiatives to support the economy by reducing lending rates and supporting credit growth, as well as offering moratoriums on loan repayments to cushion customers.”
Information available to YEN.com.gh shows that auditing firm, PwC Ghana, in its recent report on COVID-19 and its impact on the banking sector predicted that the pandemic might lead to higher credit losses for the banking sector.
It also indicated that it would impact negatively on overall asset quality, capital and liquidity in the sector.
In other news, the April 2020 Banking Sector Report shows that banks in Ghana recorded a 38% profit in the first two months of the year 2020.
It was higher than the 31.5% recorded in the first two months of the preceding year.
The upsurge in profit was recorded despite the outbreak of the coronavirus which has affected economies globally.
READ ALSO: COVID-19: Bank of Ghana lists do's and dont's for banks in Ghana
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