- A report by the Bank of Ghana shows banks have relaxed restrictions on credit facilities available to clients
- The move by the banks comes at a time of heightened financial risk due to the outbreak of COVID-19
- The banks have, however, revealed they have strong capital buffers to strengthen the banking industry
Our Manifesto: This is what YEN.com.gh believes in
Banks in Ghana have eased their stance on credit facilities to businesses regardless of the high risk of default on debts, a report by the Bank of Ghana (BoG) has revealed.
The BoG’s Credit Conditions Survey for June 2020 showed non-performing loans have increased to 15.7% of banks’ assets in June from the 14.5% recorded in March 2020.
For the next two months, businesses can, therefore, access credit with ease.
Per a report by thebftonline.com, the growth of businesses has been stifled and there is difficulty in paying back loans.
The survey also revealed that the most affected sectors in Ghana are the services, commerce, finance, and manufacturing sectors.
Despite the risks involved, banks have reportedly expressed confidence in their capital buffers given the continued strength of the total asset base of the banking industry.
It has been gathered that assets have expanded by 23.2% year-on-year to GHc139 billion at end-June 2020, even though their profits had been significantly affected by the outbreak of COVID-19.
In other news, individuals who conduct business at the premises of banks are now required to wear face masks before they enter.
The directive, which is from the Ghana Association of Bankers, forms part of measures to halt the spread of the coronavirus.
YEN.com.gh understands that banks would, therefore, turn away anyone who shows up at their premises wearing face shields without masks.
Install our latest news app for Android and read the best news about Ghana!
Do you have a hot story or scandal you would like us to publish on YEN.com.gh? Please contact us on Facebook or Instagram now!