Banks operating in Ghana wrote-off about \u00a25.9 billion as bad debt in December 2022.<\/p>\n\n\n\n
According to the Domestic Money Banks Income Statement, this is about 184.2% increase over the previous year.<\/p>\n\n\n\n
The total provision made were classified as loan losses, depreciation, and others.<\/p>\n\n\n\n
Though the Bank of Ghana did not give reasons behind this bad debt, it is believed that a difficult economic environment that triggered a high cost of borrowing may be the main reason.<\/p>\n\n\n\n
According to the Bank of Ghana, the industry\u2019s Non-Performing Loan stock increased from \u00a28.2 billion in December 2021 to \u00a210.4 billion in December 2022.<\/p>\n\n\n\n
This is partly reflecting the revaluation of foreign currency NPLs and the deterioration in some domestic currency loan portfolios.<\/p>\n\n\n\n
In terms of distribution by economic sector, the private sector accounted for a larger stock of NPLs, consistent with its larger share of total credit. Its share of total NPLs, however, declined from 96% to 92.4% between December 2021 and December 2022, while the share of public sector NPLs increased from 4% to 7.6%.<\/p>\n\n\n\n
Meanwhile, the industry\u2019s asset quality improved during the period under review following the decline in the NPL ratio from 15.2% in December 2021 to 14.8% in December 2022.<\/p>\n\n\n\n
When adjusted for the fully provisioned loan loss category, the industry\u2019s NPL ratio also improved from 5.8% to 4.8%.<\/p>\n\n\n\n
Construction sector records highest NPL ratio<\/strong><\/p>\n\n\n\n The Construction sector continued to remain the sector with the highest NPL ratio of 29.1%.<\/p>\n\n\n\n The Mining and Quarrying sector maintained the lowest NPL ratio of 4.0% during the period under review.<\/p>\n\n\n\n Sectors that recorded declines in NPL ratios were Mining and Quarrying (from 9.9% to 4.0%); Electricity, Water and Gas (from 15.4% to 10.6%); Agriculture, Forestry and Fishing (from 29.0% to 24.3%); Manufacturing (from 17.0% to 14.0%); Transport, Storage and Communications (from 13.7% to 10.5%) and; Commerce and Finance (from 20.3% to 19.4%).<\/p>\n","protected":false},"excerpt":{"rendered":" Banks operating in Ghana wrote-off about \u00a25.9 billion as bad debt in December 2022. According to the Domestic Money Banks Income Statement, this is about 184.2% increase over the previous year. The total provision made were classified as loan losses, depreciation, and others. Though the Bank of Ghana did not give reasons behind this bad […]<\/p>\n","protected":false},"author":8,"featured_media":23686,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_post_source_name":"","_post_source_url":"","footnotes":""},"categories":[61],"tags":[147,11110,9587,7358,5039,9330,9042,7703,6725,9375,10391,7730,1458,5800,9196,12354,5491,192,12773,7225,5721,7795,5612,5278,6327,8869],"class_list":["post-29756","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-agriculture","tag-asset","tag-bad-debt","tag-bank","tag-bank-of-ghana-bog","tag-banks","tag-borrowing","tag-classified","tag-debt","tag-decline","tag-declined","tag-depreciation","tag-distribution","tag-electricity","tag-environment","tag-finance","tag-gas","tag-ghana","tag-increase","tag-loan","tag-losses","tag-mining","tag-money","tag-quality","tag-stock","tag-water"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/posts\/29756","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/comments?post=29756"}],"version-history":[{"count":0,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/posts\/29756\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/media\/23686"}],"wp:attachment":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/media?parent=29756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/categories?post=29756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/tags?post=29756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}