- The Ghana Association of Bankers has revealed its members have spent about GHc102 million since COVID-19 broke out in Ghana
- It added that the decision led to a shortfall in income that could have been profit for the banks
- Banks in Ghana have also been compelled to implement strategies to reposition themselves following the outbreak of COVID-19
Our Manifesto: This is what YEN.com.gh believes in
Commercial banks in Ghana have spent an estimated GHc102 million to provide various forms of relief to their clients.
According to the Ghana Association of Bankers (GAB), the relief formed part of efforts to insulate their clients against the economic impact of COVID-19.
GAB revealed that all 23 universal banks in Ghana have been compelled to restructure, re-profile, or grant an extension of debt repayment to customers.
READ ALSO: Seven SOEs to benefit from over GHc300m from Consolidated Bank of Ghana
This, per a report by thebftonline.com, has led to a decline in profit estimates for the year 2020.
YEN.com.gh has learned that banks have reduced their interest rate between 150 and 350 points, thereby losing income that could have been recorded as profit.
According to the Deputy Chief Executive Officer of GAB, John Awuah, measures adopted by the Bank of Ghana (BoG) to reduce the cash reserve requirement gave banks leeway with the cost of funds, which can be passed on as benefits to clients.
Awuah went on to say that commercial banks in Ghana have done everything possible to support the economy since the outbreak of COVID-19, including a review of the interest rate.
In other news, 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 BoG shows this was realised during the peak of the outbreak when a partial lockdown was enforced from March 31.
The data shows GHc17.09 billion, GHc15.59 billion, and GHc14.35 billion were released as loans in March, April, and May 2020 respectively.
READ ALSO: Ecowas Bank support member states with almost $3 billion
Download our news app for Android and read the best news about Ghana!
Use the comments section below to share your views on this story.
Do you have a story to share or you have information for us? Get featured on YEN.com.gh. Message us on Facebook or Instagram!