Banks are responding to improved monetary policy conditions – John Awuah

His remarks highlight the relationship between monetary policy, lending rates and credit availability, suggesting that sustained reductions in borrowing costs will depend not only on the central bank’s policy decisions but also on improvements in loan recovery, credit risk management and the wider business environment.

Despite the improvement in lending rates, Mr Awuah warned that Ghana’s high non-performing loan (NPL) ratio remains a major obstacle to expanding affordable credit.

The Chief Executive Officer of the Ghana Association of Banks, John Awuah, has defended the banking sector’s lending practices, arguing that a decline in borrowing costs and strong private sector credit growth demonstrate that banks are responding to improving monetary conditions.