Banks must diversify their revenue streams – BoG.

The Bank of Ghana (BoG) has stressed the need of banks diversifying their revenue streams, cautioning that relying too much on net interest income may make them more vulnerable financially, particularly in an unstable economic climate.

Dr. Johnson Asiama, Governor of the Bank of Ghana, states that although net interest income is still a vital and acceptable source of income, relying too much on it can increase susceptibility to sovereign exposure dynamics and interest rate cycles.

“As margins compress in a normalising rate environment, earnings resilience will increasingly depend on diversification, particularly through transactional banking, trade services, payments, treasury activities, and other fee-based income streams that are less balance-sheet intensive,” Dr. Asiama said.

Source: newsthemegh.com