“I believe it’s time for a serious discussion about how we can support our local banks” – Ato Forson

According to Minority Leader Cassiel Ato Forson, banks are currently suffering as a result of the policies of the economic management team headed by Vice President Mahamudu Bawumia.

“I am deeply concerned about the current state of our banking sector, especially the impact of government policies on our local banks,” Dr. Forson wrote in a tweet.

It’s no secret that many of these banks, which are crucial to helping SMEs in Ghana, are having serious financial issues, the author said.

“The NPP government has implemented policies that have seriously eroded the capital of most of our banks,” he claimed. Alhaji Bawumia, the head of the EMT.

This, in his view, “is having a devastating effect on their ability to lend to businesses, create jobs, and contribute to the growth of our economy”.

“I believe it’s time for a serious discussion about how we can support our local banks and help them weather this difficult period”, Dr Forson suggested.

Bloomberg reported a few days ago that two of Ghana’s major banks have suffered their first loss ever as a result of the West African country’s decision to restructure its local currency and foreign debt.

The largest lender in the nation by assets, GCB Bank Plc, reported its first financial loss since 1993, when Bloomberg began keeping records, at 593.4 million cedis ($50.5 million).

The largest bank in Ghana by market value, Standard Chartered Bank Ghana Ltd., posted a loss of 297.8 million cedis.

According to Bloomberg, the second-largest economy in West Africa has suffered a knock to the tune of $1.4 billion as the nation restructures the majority of its estimated 576 billion cedi public debt.

Guaranty Trust Holding Co., Nigeria’s biggest bank by market value, promised to reduce lending and bond trading in Ghana as a result of the impairments.

Following the impairment of its debt securities, GCB Bank incurred charges totaling 1.83 billion cedis, whereas Standard Chartered Bank Ghana incurred charges totaling 173 million cedis.

Lenders in Ghana were given an extra month to release full-year earnings.

The country’s debt increased as a result of shocks from the CoVid-19 outbreak and Russia’s invasion of Ukraine, which added to expenditure pressures brought on by an energy crisis between 2013 and 2015 and a massive banking sector clean-up in 2018.

Source: Ghanatodayonline.com