GCB Bank’s Managing Director, John Kofi Adomakoh, has raised concerns over the increasing trend of loan defaults among Ghanaians, which he says is driving the surge in non-performing loans (NPLs) in the banking sector.
During the 119th Monetary Policy Committee press briefing, the Bank of Ghana reported that the industry’s NPL ratio had risen to 24.1 per cent in June 2024, up from 18.7 per cent in the same period in 2023, highlighting the growing credit risk in the system.
Speaking at the “Facts Behind the Figures” programme organized by the Ghana Stock Exchange, Adomakoh urged borrowers to meet their loan obligations promptly and called on banks to take proactive measures to recover loans from customers to reduce NPLs.
“We have a bad habit in Ghana. We borrow money and don’t want to pay. We have to pay. The bank should go out and collect the money. It is as a result of this that our NPLs are rising, and loan pricing is very expensive,” Adomakoh stated.
He emphasized the importance of responsible borrowing and repayment, noting that if loans are not repaid, banks cannot continue lending, which would hinder the growth of the economy. “We are an emerging economy with huge opportunities, and banks have a role to play in ensuring liquidity for businesses to thrive. The general public, please pay your loans,” he urged.
