Savings and loans companies receive assurance from BoG to resolve NPLs

Savings and loans companies in the country have received assurances from the central bank that steps will be taken to resolve difficulties with Non-Performing Loans (NPLs) and high interest rates.

The Central Bank claims to have seen the difficulties facing the sector’s operators.

As the bank continues to work to ensure financial stability, Mr. Osei Gyasi, head of banking supervision at the Bank of Ghana, asked members of the sector to adhere to the regulatory standards.

He was speaking on behalf of the Bank of Ghana Governor during the 13th Annual General Meeting of the Ghana savings and loans companies

“The Bank of Ghana has observed with concerns of some increases in Non-Performing Loans and funding costs which may sooner or later threaten the stability of the sector”, he said.

“It is imperative that prompt corrective actions are put in place to curb the rising trends in NPLs and divert the funding sources to enhance profitability and foster customer confidence”, he added.

On his part, the Executive Secretary of the Ghana Association of Savings and Loans Companies, Tweneboah Kodua Boakye disclosed that it has begun recovering from the shocks of the implementation of the Domestic Debt Exchange Programme.

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