Banking sector now resilient

Banking sector now resilient – BoG

BoG

The latest assessment of the banking sector shows that it has become more resilient and is well-capitalized, solvent and liquid.

There is also evidence of strong deposit growth in the industry pointing to a return of confidence in the banking sector.

This was contained in the Bank of Ghana’s Monetary Policy Committee statement released on Monday, 27 May 2019.

At the end of December 2018, the BoG successfully completed its recapitalization exercise. Twenty-three banks ? which met the new minimum paid-up capital of GHC400 million ? are now operating as universal banks in Ghana.

“Over the first four months of 2019, banks’ total assets amounted to GHS109.9 billion, representing an annual growth of 12.4 percent. The growth in total assets was funded mainly from deposits which grew by 19.6 percent year-on-year to GHS73.1 billion. The industry’s financial soundness indicators have improved, with the Capital Adequacy Ratio (CAR) at 21.4 percent in April 2019, significantly higher than the prudential requirement of 10.0 percent. Under the new Bank of Ghana Capital Requirement Directive (CRD), the CAR was 17.4 percent compared with the 13.0 percent prudential requirement (inclusive of a 3% buffer under the CRD),” the BoG’s monetary policy statement said.

According to the BoG, asset quality, however, remains a key challenge and a major constraint to credit expansion in the banking sector.

Although the Non-Performing Loans (NPL) ratio has declined from 23.5 percent in April 2018 to 18.9 percent in April 2019, it remains high and points to the industry’s exposure to credit risk.

To help reduce the NPL ratio further, the BoG said banks are working to strengthen their credit risk management practices and loan recovery efforts.

Source: classfmonline.com

Comments

Thomas Barrack: Top Trump aide accused of working as foreign agent

Billionaire and long-time Donald Trump ally Thomas J Barrack have been arrested in Los Angeles for allegedly acting as an agent of a foreign government. The 74-year-old investment firm founder served as a key adviser to the former US president's 2016 campaign and was considered a top fundraiser. Mr. Barrack is accused of illegally lobbying on behalf of the United Arab Emirates during and after the campaign. A spokesman for Mr. Barrack said he planned to plead not guilty. He is the latest ex-Trump official to face federal charges. Mr. Barrack is charged with conspiracy, obstruction of justice, and making multiple false statements to the FBI during a 2019 interview. Also charged are Matthew Grimes, 27 - who works for Mr. Barrack - and UAE citizen Rashid Sultan Rashid Al Malik Alshahhi, 43, according to the seven-page indictment . Acting Assistant Attorney General Mark Lesko said the conduct alleged in the indictment was "nothing short of a betrayal" of US officials inclu...

Ejura killings: We’ll be open-minded in our report and recommendations – Justice Koomson

After 12 days of public sitting, the three-member committee that investigated the Ejura disturbances has wrapped up its work. The committee set up by the president follows the killing of two people and the injuring of four others by soldiers during a protest against the killing of a social activist, Ibrahim Muhammed. The deceased, also known as Macho Kaaka, died on Monday, June 28, 2021, after he was attacked by a mob while returning home on his motorbike at Ejura. It is unclear for now the motive for his murder but some have linked it to his social activism role. Chairman of the committee, Justice George Kingsley Koomson told the media the committee was thorough in its work. “In all 22 witnesses appeared before us but three of them because of security reasons provided evidence in camera, also 117 videos, 555 pictures, and three documents were received by the committee as evidence and now we will sit, write our report together with recommendations and present it to the interior m...

Invest your profits back into farming - COCOBOD boss to Cocoa Farmers

Joseph Boahen Aidoo is Chief Executive Officer of COCOBOD The Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), Joseph Boahen Aidoo, has charged cocoa farmers to be business minded in operating their farms and to partake fully in the various programmes introduced by COCOBOD to ensure good farm yields and to increase profits. "Good farming practices, like pruning, the timely application of fertilizers and proper pests control are essential at all times," he said. Joseph Boahen Aidoo stated this while interacting with farmers in the Ashanti and Brong Ahafo Regions, on the first day of his week-long tour of cocoa farms across the county. He was accompanied by the Deputy Chief Executive of Operations at COCOBOD, Dr Emmanuel Opoku, as well, as Directors and Research Scientists from COCOBOD. The tour is aimed at assessing the level of farmer participation in the various farm productivity improvement programmes implemented by COCOBOD; it is also...

Odi News Network

Search This Blog