- A report from the Bank of Ghana shows loans available to customers fell by GHc1.24 billion in May 2020
- The drop in deposits was attributed to the outbreak of the coronavirus and the partial lockdown from March 31
- The decision was based on the economic uncertainties following the outbreak of the pandemic
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The outbreak of the coronavirus compelled banks in Ghana to reduce loans available to customers by GHc1.24 billion in May 2020.
The latest Statistical Bulletin by the Bank of Ghana (BoG) shows this was realised during the peak of the outbreak when a partial lockdown was enforced from March 31.
The data shows that GHc17.09 billion, GHc15.59 billion, and GHc14.35 billion were released as loans in March, April, and May 2020 respectively.
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Per a report by myjoyonline.com, the gradual fall in the amount of funds released as loans is largely attributed to banks' tough stance on credit. The rationale behind the move, YEN.com.gh has learned, was due to the uncertainties associated with the economic impact of COVID-19.
Presently, it is expected that some banks will observe the situation to determine their next line of action. The tight stance on credit to the private sector also led to marginal growth, or in some cases, a downturn in net fees and commissions earned by banks.
In other news, banks in Ghana have expressed readiness to support viable projects in order to help revive the economy, YEN.com.gh has learned.
Regardless of the outbreak of COVID-19, the banks indicated that despite the pandemic they are ready to make loans available to small and medium enterprises (SMEs) and individuals in Ghana.
According to the Managing Director of the Consolidated Bank of Ghana (CBG), Daniel Addo, the financial institutions remain committed to providing support to businesses in the country.
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