Managing Director of GCB Financial institution PLC, John Kofi Adomakoh, has expressed concern over the rising tradition of mortgage defaults amongst Ghanaians, which he says is considerably contributing to the surge in non-performing loans (NPLs) throughout the banking sector.
At its 119th Financial Coverage Committee press briefing, the Financial institution of Ghana disclosed that the trade’s NPL ratio had surged to 24.1 % in June 2024, up from 18.7 % in the identical interval of 2023, underscoring the heightened credit score danger within the system.
Talking on the “Details Behind the Figures” programme organised by the Ghana Inventory Trade, GCB Financial institution MD John Kofi Adomakoh referred to as on debtors to honour their mortgage obligations promptly.
He additionally urged banks to take obligatory steps to retrieve monies given out to clients within the type of loans to drive down NPLs.
“We now have a foul behavior in Ghana. We borrow cash and we don’t wish to pay. We now have to pay. The financial institution ought to exit and acquire the cash. It’s because of this that our NPLs are rising. It’s because of this that pricing for loans could be very costly.
“We must always make it a behavior that you just go to a financial institution to borrow…it doesn’t matter whether or not it’s a GCB or XCB ….if you borrow cash, your duty is to pay again and the banks should exit and acquire their cash and that’s what GCB is doing in any other case we can not lend.
“If you happen to proceed to borrow from the financial institution and also you don’t pay again, then the banks can not lend…we’re an rising financial system…we’re a rising financial system now we have enormous alternatives and banks have a task to play in ensuring that liquidity is on the market for companies to thrive. Most people please let’s pay your loans,” John Kofi Adomakoh mentioned.