The Bank of Ghana has assured Savings and Loans Companies it is working hard to address the high Non-Performing Loans and cost of funds.

According to the Central Bank, it has observed the challenge of NPLs on the tier-two financial institutions, hence the need to devise a strategy to support them.

Speaking on behalf of the Governor at the 13th Annual General Meeting of the Ghana Association of Savings and Loans, the Head of Banking Supervision at the Bank of Ghana, Osei Gyasi urged members of the sector to comply with regulatory standards as the Central Bank continues with its effort in ensuring financial stability.

"The Bank of Ghana has observed with concerns of some increases in Non-Performing Loans and funding costs which may sooner or later threaten the stability of the sector".

“It is imperative that prompt corrective actions are put in place to curb the rising trends in NPLs and divert the funding sources to enhance profitability and foster customer confidence", he said.

The Executive Secretary for the Ghana Association of Savings and Loans Companies, Tweneboah Koduah, called for more robust financial structures to cushion players to withstand shocks.

"A collaborative effort from the regulator and various stakeholders would be key to supporting the growth of the sector. The association is working assiduously to improve its operations regardless of the current crisis”, he added.

The 13th AGM was under the theme "The Economic Outlook of Ghana-Opportunities and Challenges for the Savings and Loans sector".