Ghana’s banking industry is especially at risk – Fitch Solutions

Compiled By: Prince Henry Danquah, Bora Capital Advisors Ltd.

Ghana’s banking sector is particularly vulnerable, with a high non-performing loan (NPL) ratio of 21.8% and a Capital Adequacy Ratio (CAR) of 14.0%.

According to Fitch Solutions, this is a result of the Domestic Debt Exchange Programme (DDEP) and high interest rates.

In its paper titled “US Tariffs Increase Risks for SSA Banks,” Ghana has the highest NPLs among the 10 top Sub-Saharan African countries, while its CAR is the third weakest.

Despite upcoming challenges, it, however, said SSA banks are generally well-positioned, supported by robust capital adequacy ratios (CAR) and decent loan quality.

Source: newsthemegh.com