Banks in Ghana recorded bad debt worth $220 million in 2018

Banks operating in Ghana wrote off a total amount of $220 million as bad debt in 2018.

Dr Ernest Addison, Bank of Ghana Governor

This follows a report the Bank of Ghana (BoG) revealed through the Banking Sector Report.

The bad debt came from the first 10 months in 2018.

According to the report, the provision for bad debt was made up from loan losses, depreciation, among others.

It further said the banking industry’s adjusted non-performing loans (NPLs) ratio. The NPLs adjusted for fully-provisioned loss-loans category increased to 11.4 per cent from January to October 2018 from 10.5 per cent within the same period in 2017.

This reflected the decline in the loss loan category as a result of the write-offs by banks that were given approval by the Bank of Ghana.

The Bank of Ghana in June 2018 issued a directive to all banks to submit a schedule of loss loans that were past due for more than two years to activate the write-off policy. This was an initiative to reduce the size of the loss loan component of the industry’s NPLs.

This directive was in line with Section 75(2) and 92(2) ii of the Banks and Specialized Deposits-taking Institutions Act, 2016 (Act 930).

Meanwhile, the central bank gave approval to some banks to write-off their loss loans totalling a maximum of GH¢1.2 billion by August 2018. 

The banks that received approvals to write-off their loss loans were required to submit quarterly reports on recoveries made on the loans that have been written off to Bank of Ghana to ensure full loan recovery.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

4 side effects of being a virgin for too long, according to research

4 side effects of being a virgin for too long, according to research

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

KDF moves to forcibly acquire Sh 500M supermarket land in Nairobi

KDF moves to forcibly acquire Sh 500M supermarket land in Nairobi

Willy Paul apologizes to Kenyans on Behalf of Diana B

Willy Paul apologizes to Kenyans on Behalf of Diana B

Zari Hassan lectures Tanzanians over her viral black innerwear video

Zari Hassan lectures Tanzanians over her viral black innerwear video

DP Ruto's firm wins Sh190M Nairobi county gov't tender

DP Ruto's firm wins Sh190M Nairobi county gov't tender

Diana Marua hospitalized, Bahati gives update [Photos]

Diana Marua hospitalized, Bahati gives update [Photos]

Betty Kyallo shares photos of the first Subaru she bought after joining KTN

Betty Kyallo shares photos of the first Subaru she bought after joining KTN

North Korean man who smuggled 'Squid Game' into the country to be sentenced to death

North Korean man who smuggled 'Squid Game' into the country to be sentenced to death