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The CEO of the Ghana Association of Banks, John Awuah, has voiced his concerns about the banking sector. In an exclusive interview, he stressed the importance of minimizing bad loans, citing the significant financial impact they have on banks. Awuah also highlighted the challenging market dynamics, where banks are reportedly losing approximately GHS 18 for every GHS 100 loan they extend.
Furthermore, he pointed out that current market rates rarely allow businesses to achieve a remarkable 40% return on a GHS 100 investment. Regarding regulatory requirements, Mr. Awuah clarified that these standards represent the minimum benchmarks for banks to uphold, although he refrained from specifying the ideal capital levels.
Awuah emphasized the critical importance of maintaining a minimum threshold that banks must not dip below. Finally, he expressed concerns about the local bondholders, who have already experienced significant losses and may be hesitant to take on additional financial risks.
