Governor of the Bank of Ghana, Dr Ernest Addison, has said the adverse impact of the coronavirus pandemic may result in a rise of Non-Performing Loans (NPLs) of Ghanaian banks.
According to him, in the first three years post the coronavirus pandemic, the central bank would have to follow a careful unwinding of countercyclical measures to avert the rise.
Dr Ernest Addison speaking at the 2020 Annual Dinner of the Chartered Institute of Bankers said the Bank of Ghana will continue to strengthen all the regulatory measures it has implemented over the last three and half years.
“The economic impact of the pandemic may result in higher non-performing loans and some capital erosion of banks. Looking ahead, the Bank of Ghana will continue to strengthen all the regulatory measures implemented over the last three and half years to maintain confidence and safeguard financial stability.”
“In the aftermath of the pandemic, (2021, 2022 or 2023) we would have to follow a careful unwinding of countercyclical measures that we have implemented and allow the financial system to function without the regulatory forbearance that we have put into place,” Dr Addison said.
“Banks will have to be vigilant and upgrade their capabilities, improve governance and risk culture, and we are optimistic that with this approach, we will build a robust, resilient and capable financial sector to support Ghana’s Beyond Aid Agenda,” he added.