{"id":15096,"date":"2026-02-20T12:20:11","date_gmt":"2026-02-20T12:20:11","guid":{"rendered":"https:\/\/gnbcc.net\/?p=15096"},"modified":"2026-02-20T14:09:18","modified_gmt":"2026-02-20T14:09:18","slug":"industry-rallies-behind-50-cocoa-processing-directive-pushes-import-restrictions-to-protect-local-industry","status":"publish","type":"post","link":"https:\/\/gnbcc.net\/industry-rallies-behind-50-cocoa-processing-directive-pushes-import-restrictions-to-protect-local-industry\/","title":{"rendered":"High NPLs \u2018scare\u2019 banks from lending to businesses"},"content":{"rendered":"\n

Despite a significant drop in lending rates, commercial banks have become wary of lending due to high non-performing loans (NPLs) in the sector, President-Ghana Association of Banks (GAB) John Awuah has said. He argued that Ghana has the highest NPLs ratio in the West African sub-region, hovering around 19 percent. This, he noted, forces banks to take a defensive posture toward individuals and businesses; demanding stringent conditions that preclude SMEs from accessing credit.<\/p>\n\n\n\n

\u201cFor every GH\u00a2100 you lend of depositors\u2019 money, you are potentially going to lose GH\u00a219,\u201d he explained. \u201cThe credit culture is bad. There\u2019s default everywhere \u2013 from individual level to household to business.\u201d Mr. Awuah further noted that an efficient credit system requires more than just willing lenders, calling for deeper collaboration with state institutions. \u201cIf we work well together, we will bring the default rate down,\u201d he said.<\/p>\n\n\n\n

He made these remarks at a high level meeting with the Ghana National Chamber of Commerce and Industry (GNCCI) in Accra. The meeting was convened by the Chamber to discuss access to credit. Speaking at the meeting, the President of GNCCI, Stephane Miezan, said the business community has yet to reap benefits from aggressive Bank of Ghana (BoG) policy rate cuts, as members of the Chamber still struggle in circumventing barriers to access credit.<\/p>\n\n\n\n

The business leader intimated that if interest rates are low but businesses cannot access loans, then credit is equally expensive.  He revealed that small- and medium-sized enterprises (SMEs) still go through a tortuous loan application process, despite the drop in interest rates. \u201cWe keep saying that if interest rates go down and you can\u2019t access loans, then it\u2019s equally expensive,\u201d he told journalists.<\/p>\n\n\n\n

Lending rates have dropped to their lowest in recent years following BoG\u2019s aggressive policy rate cuts. The central bank continued a streak of policy rate easing for four consecutive sessions \u2013 since July 2025 into 2026. It slashed the benchmark rate by 300 basis points from 28 percent to 25 percent in July 2025, marking the first major easing since the economic crisis of 2022.<\/p>\n\n\n\n

It has since maintained that cautious yet aggressive posture into 2026, following a sustained trend of disinflation. As inflation continues to tumble, BoG has cut the rate down to 15.5 percent in January this year. Inflation for the month of February stood at 3.8 percent.<\/p>\n\n\n\n

On the other hand, the Ghana Reference Rate, which commercial banks base to fix their interest rates, has also dropped significantly. It plummeted from 29.96 percent in February 2025 to 14.58 percent in February 2026. Financial analysts predict lending rates to continue falling.<\/p>\n\n\n\n

Despite these trends of gradual easing in finance costs, Mr. Miezan insisted that barriers to finance access still persists and continue to bite the business community. High collateral requirements, prolonged approval periods, high rejection rates for small- and medium-sized enterprises \u2013 especially in manufacturing and value addition \u2013 are among barriers the Chamber seeks to resolve.<\/p>\n\n\n\n

Some members of the Chamber narrated their experiences in unsuccessfully attempting to access finance from commercial banks. They therefore recommended that banks\u2019 loan approval units be decentralised to speed up delivery and improve access. They further asked that loan application systems be digitised and set a well-defined time-frame for approval. They also urged banks to design tailor-made products that spur growth in the country\u2019s ailing manufacturing sector.<\/p>\n\n\n\n

Reacting to the concerns, Mr. Awuah expressed his outfit\u2019s commitment to helping resolve issues that are in the purview of its members, promising to forward their recommendations in writing to the banks.<\/p>\n\n\n\n

Responding to claims of excessive collateral demands \u2013 with many business owners accusing banks of greed \u2013 Mr. Awuah clarified that the requirement for collateral coverage of up to 120 percent is driven by regulatory provisions and not determined at the discretion of individual banks.<\/p>\n\n\n\n

\u201cIt\u2019s a requirement of law. If you want a secure facility then by law the banks must have a collateral coverage of at least 120 percent,\u201d he explained, while emphasising the need for communication to create awareness about bank processes.<\/p>\n\n\n\n

\u201cAs banks, we need to communicate a lot more,\u201d he stressed. He urged businesses to explore specialised funding sources, particularly green finance, which could offer even lower rates than traditional banks.<\/p>\n\n\n\n

Education<\/strong><\/p>\n\n\n\n

The GNCCI president expressed the Chamber\u2019s commitment in educating its members on financial discipline and their collective responsibility to meet loan obligations. \u201cThese are things we have to go back and educate the private sector on. It\u2019s not just us advocating for you to access the facility; it\u2019s also your responsibility to meet your obligations,\u201d he said.<\/p>\n\n\n\n

Click here<\/strong><\/a> for source.<\/p>\n","protected":false},"excerpt":{"rendered":"

Despite a significant drop in lending rates, commercial banks have become wary of lending due to high non-performing loans (NPLs) in the sector, President-Ghana Association of Banks (GAB) John Awuah has said. <\/p>\n

He argued that Ghana has the highest NPLs ratio in the West African sub-region, hovering around 19 percent. This, he noted, forces banks to take a defensive posture toward individuals and businesses; demanding stringent conditions that preclude SMEs from accessing credit.<\/p>\n","protected":false},"author":10,"featured_media":15124,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"yes","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[153],"tags":[],"class_list":["post-15096","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-articles"],"jetpack-related-posts":[{"id":14921,"url":"https:\/\/gnbcc.net\/banks-to-fund-60-of-govt-capex-in-2026-gab\/","url_meta":{"origin":15096,"position":0},"title":"Banks to fund 60% of gov\u2019t CAPEX in 2026 \u2013 GAB","author":"Michael Teye","date":"February 6, 2026","format":false,"excerpt":"Commercial banks are expected to finance about 60 percent of government capital expenditure (CAPEX) from 2026, placing them at the centre of the development agenda with what the Ghana Association of Banks (GAB) describes as a \u201cdouble-edged sword\u201d for the economy, according to its 2026 Industry Outlook.","rel":"","context":"In "News Articles"","block_context":{"text":"News Articles","link":"https:\/\/gnbcc.net\/category\/news-articles\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/02\/Bcapex.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/02\/Bcapex.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/02\/Bcapex.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/02\/Bcapex.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/02\/Bcapex.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/02\/Bcapex.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":18686,"url":"https:\/\/gnbcc.net\/boost-productive-sector-lending-bog\/","url_meta":{"origin":15096,"position":1},"title":"Boost productive-sector lending – BoG","author":"Paul N.","date":"August 20, 2026","format":false,"excerpt":"The Bank of Ghana has urged banks to translate easing financial conditions and stronger credit growth into increased financing for productive sectors, particularly SMEs and agricultural value chains.","rel":"","context":"In "News Articles"","block_context":{"text":"News Articles","link":"https:\/\/gnbcc.net\/category\/news-articles\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/08\/ESQ-Elsie-20.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/08\/ESQ-Elsie-20.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/08\/ESQ-Elsie-20.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/08\/ESQ-Elsie-20.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/08\/ESQ-Elsie-20.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":13189,"url":"https:\/\/gnbcc.net\/strong-cedi-easing-inflation-create-room-for-lending-expansion\/","url_meta":{"origin":15096,"position":2},"title":"Strong cedi, easing inflation create room for lending expansion","author":"Tracy Mensah","date":"October 7, 2025","format":false,"excerpt":"With a strong currency and falling inflation, banks have more scope to expand lending, Bank of Ghana Governor Dr. Johnson P. 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