• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Banking & Finance

Banks Eye Lower Lending Rates to Boost Credit, Cut Loan Defaults

2 months ago
in Banking & Finance, Business, Economy, Features, highlights, Home, home-news, latest News
1 min read
0 0
0
117
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Banks Eye Lower Lending Rates to Boost Credit, Cut Loan Defaults

Ghana’s banking industry is projecting a decline in lending rates to ease loan repayment pressures and reduce the high incidence of defaults, following policy directives from the Bank of Ghana.

The Ghana Association of Banks (GAB) said the sharp fall in the Ghana Reference Rate (GRR) to 19.67% in August 2025, from 29.72% in January, together with the central bank’s reduction of the policy rate to 25%, should encourage credit expansion while improving asset quality. Non-performing loans (NPLs) currently stand at 22%.

The remarks come after Bank of Ghana Governor, Dr Johnson Asiama, urged lenders to reorient their business models away from heavy reliance on government securities and channel more funds into productive sectors to support the economy’s fragile recovery.

Chief Executive Officer of GAB, John Awuah, in an interview, noted that cheaper credit, coupled with stronger oversight, could help improve repayment behaviour, but called on regulators and other stakeholders to play a more active role in mitigating risks.

“Banks have always been ready. With the default rate where they are, you can be as ready as you like, but if you are confronted with a 22% non-performing loan ratio, you will also be careful. You are playing with depositors’ money, and you don’t want to be throwing money out when the expectation for recovery is that low. We are calling on all key players whose decision-making, or lack of it, affects banks’ ability to recover from distressed accounts, to be watching the space,” he cautioned.

Mr Awuah added that elevated lending rates themselves have contributed to defaults, making facilities unaffordable for borrowers.

RelatedPosts

Businesses Flock to Ethiopia’s Newly-Opened Banking Market

Among Africa’s Top Performing Currencies — the Zambian Kwacha

PIAC Urges Increased Investment in Petroleum Sector as Ghana Projected to Capture 20% of West Africa’s $80bn Oil and Gas Market by 2033

“Banks want to lend, but if the environment doesn’t foster lending… in a bid to protect depositors’ funds, we will be careful. We hold the view that higher lending rates also contribute to higher default rates because the facility becomes unaffordable. If the rate comes down and lending follows in tandem, then the propensity to perform on the loan will be enhanced,” he explained.

The fall in the GRR to 19.67% in August represents a 10.05 percentage point drop since the beginning of the year, compared with a more stable trend in 2024 when rates hovered above 29%. Analysts note that the decline reflects improved macroeconomic stability, easing inflation, and recent monetary policy adjustments.

The Monetary Policy Committee of the Bank of Ghana recently lowered the policy rate by 300 basis points, from 28% to 25%, to support credit growth and recovery momentum.

Tags: BanksBanks Eye Lower Lending Rates to Boost CreditCut Loan Defaultslending rates

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

No Result
View All Result

Highlights

BoG Reviewing Consumer Recourse Mechanism to Address Gaps in Complaint Redress System, Says 2nd Deputy Governor

A Look at the Opportunities and Challenges as North America Gears Up for the 2031 Women’s World Cup

Black Stars Nominated for National Team of the Year at 2025 CAF Awards

Parliament to Hold Special Hearings on Extractive Industries’ Impact on Jobs and National Development

Ghana’s Economy Ranked Among 14 African Economies at High Risk of Short-Term and Commercial Vulnerability

Dangote Plans Refinery Upgrade to Dethrone India and Lead the Global Refining Market

Trending

Business

Businesses Flock to Ethiopia’s Newly-Opened Banking Market

October 22, 2025

Businesses Flock to Ethiopia's Newly-Opened Banking Market Ethiopia is opening its banking sector to foreign players for...

Among Africa’s Top Performing Currencies — the Zambian Kwacha

October 22, 2025

PIAC Urges Increased Investment in Petroleum Sector as Ghana Projected to Capture 20% of West Africa’s $80bn Oil and Gas Market by 2033

October 22, 2025

BoG Reviewing Consumer Recourse Mechanism to Address Gaps in Complaint Redress System, Says 2nd Deputy Governor

October 22, 2025

A Look at the Opportunities and Challenges as North America Gears Up for the 2031 Women’s World Cup

October 22, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.