BoG to amend guidelines for commercial banks on loans

The Bank of Ghana (BoG) has said that it has started the process to amend its risks guidelines for commercial banks.

The Governor of the BoG made this known in a speech read on his behalf by Grace Akrofi at the Annual General Meeting of the Ghana Association of Savings and Loans Companies in Accra.

This means that commercial banks will soon have new guidelines on the quantum of loans they can advance to their clients.

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It forms part of measures to reduce the high non-performing loans in the banking sector.

Grace Akrofi said that “other guidelines and directives have also been finalized and ready to be issued for the industry.” These guidelines include those on mergers, acquisitions, owner and control, guidelines for financial holdings and outsourcing guidelines among others.

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She said that the BoG is committed to ensuring that the financial institutions improve their governance practices, internal control, and risk management.

She argued that this can be done when Boards and senior management of financial institutions practice sound corporate governance and comply with the provisions of the corporate governance directives to increase productivity in the sector.

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