GCB Bank MD John Kofi Adomakoh Urges Ghanaians to Address Rising Loan Defaults

John Kofi Adomakoh, Managing Director of GCB Bank PLC, has voiced significant concern over the growing issue of loan defaults in Ghana, which he attributes to the alarming increase in non-performing loans (NPLs) within the banking sector.

During the Bank of Ghana’s 119th Monetary Policy Committee press briefing, it was revealed that the industry’s NPL ratio had escalated to 24.1 percent in June 2024, up from 18.7 percent in June 2023. This rise highlights the increasing credit risk facing banks and underscores the need for urgent action.

At the “Facts Behind the Figures” programme hosted by the Ghana Stock Exchange, Adomakoh addressed the pressing issue, urging borrowers to meet their loan obligations promptly. He emphasized that the rising NPLs are a result of widespread non-payment of loans, which in turn drives up the cost of borrowing.

We have a bad habit in Ghana where people borrow money but fail to repay it. This behavior is contributing to the increase in NPLs and is making loan pricing very expensive,” Adomakoh stated. “When you borrow money from a bank, whether it’s GCB or another institution, it is your responsibility to repay the loan. Banks must also actively pursue collections to manage their NPLs effectively.

Adomakoh stressed that the banking sector plays a crucial role in supporting the economy by providing liquidity for businesses to thrive. He urged the general public to fulfill their loan obligations to ensure that banks can continue to offer financial support.

We are an emerging and growing economy with vast opportunities. For banks to contribute effectively to economic development, it is essential for borrowers to honor their loans,” he added. “If loan defaults continue, it will hinder the ability of banks to lend and support the economy.

Adomakoh's remarks reflect a broader call for responsible borrowing and lending practices to foster a more stable and sustainable financial environment in Ghana.