• GH¢1.37 billion was written off as bad debt, BoG
• Loan losses and recovery has been a challenge
The Income Statement of 23 banks operating in the country has shown that GH¢1.37 billion was written off as bad debt for August 2021, a Bank of Ghana report has revealed.
A Joy Business report said this was slightly higher than what was recorded for the same period in 2020 with GH¢1.30 billion classified as bad debt.
On the aspect of bad loans, the Bank of Ghana report said, growth witnessed a slow down recording 5.3 percent, compared with 29.5 percent earlier recorded in 2020.
Meanwhile, the provision for bad debt written off by banks can be attributed to loan losses, loan recovery, depreciation among others.
Already, the 2021 Banking Sector Development report for the period of September 2021 showed that asset quality risks of banks increased significantly in 2021 as compared to 2020.
This, according to the central banks was based on loan repayment constraints associated with the coronavirus pandemic among others. Read Full Story
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