GCB Bank PLC’s Managing Director, John Kofi Adomakoh, has expressed concern over the growing trend of loan defaults among Ghanaians. This trend is significantly contributing to the surge in non-performing loans (NPLs) within the banking sector.
The Bank of Ghana recently disclosed that the industry’s NPL ratio had risen to 24.1% in June 2024, up from 18.7% in the same period of 2023. This increase highlights the heightened credit risk in the system, emphasizing the need for urgent action.
Speaking at the “Facts Behind the Figures” program, Adomakoh called on borrowers to honor 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.
Adomakoh emphasized that borrowers have a responsibility to pay back loans, stating, “We have a bad habit in Ghana. We borrow money and we don’t want to pay.” He noted that this habit leads to rising NPLs and expensive loan pricing, ultimately affecting the entire economy.
Adomakoh stressed that banks, including GCB, are working to collect debts and urged the general public to prioritize loan repayment. By doing so, banks can continue to lend and support businesses, contributing to Ghana’s economic growth and development.
