Managing Director of GCB Bank PLC, John Kofi Adomakoh, has expressed concern over the rising culture of loan defaults among Ghanaians, which he says is significantly contributing to the surge in non-performing loans (NPLs) within the banking sector.
At its 119th Monetary Policy Committee press briefing, the Bank of Ghana disclosed that the industry’s NPL ratio had surged to 24.1 percent in June 2024, up from 18.7 percent in the same period of 2023, underscoring the heightened credit risk in the system.
Speaking at the “Facts Behind the Figures” programme organised by the Ghana Stock Exchange, GCB Bank MD John Kofi Adomakoh called on borrowers to honour their loan obligations promptly.
He also urged banks to take necessary steps to retrieve monies given out to customers in the form of loans to drive down NPLs.
“We have a bad habit in Ghana. We borrow money and we 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. It is as a result of this that pricing for loans is very expensive.
“We should make it a habit that you go to a bank to borrow…it doesn’t matter whether it is a GCB or XCB ….when you borrow money, your responsibility is to pay back and the banks must go out and collect their money and that is what GCB is doing otherwise we cannot lend.
“If you continue to borrow from the bank and you don’t pay back, then the banks cannot lend…we are an emerging economy…we are a growing economy we have huge opportunities and banks have a role to play in making sure that liquidity is available for businesses to thrive. The general public please let’s pay your loans,” John Kofi Adomakoh said.
Source: citibusinessnews.com