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Despite the growing rate of non-performing loans (NPLs), Access Bank Ghana PLC has maintained its consistent support for the growth of small and medium scale enterprises (SMEs) in the country.
For instance, since the beginning of the year to date, the bank has supported more than 20,000 SMEs with loan facilities at highly competitive interest rates in a move meant to help small businesses to overcome the harsh economic conditions and play a more meaningful role in the economy.
The bank has also doubled up on its capacity building initiatives for SMEs as it works to help reduce the level of NPLs and also reduce the risks associated with doing business with them.
To further demonstrate its commitment to the sector, the bank launched an innovative business card designed to support SMEs in the country.
The card allows SMEs to withdraw up to GH¢50,000 at the bank’s Automated Teller Machines (ATMs), providing the much-needed cash flow to boost their businesses.
Head of Retail and Digital Banking at Access Bank Ghana PLC, Pearl Nkrumah, told the Graphic Business in an interview on the sidelines of a networking session for SMEs, that the new card was tailored to meet the unique needs of SMEs.
"Our goal is to empower SMEs to grow their businesses with this card. SMEs can access funds whenever they need it, allowing them to take advantage of business opportunities and manage their cash flow more efficiently, she stated.
The networking session was organised by Access Bank in collaboration with Graphic Business for SMEs.
The introduction of the new business card meant to boost liquidity of SMEs, comes at a time when players in that space face significant challenges accessing credit due to the high NPLs in the country.
According to the Bank of Ghana (BoG), NPLs have been increasing over the period, posing a significant risk to the banking sector.
At the last Monetary Policy Committee (MPC) news conference, it was revealed that high Non-Performing Loans (NPLs) ratio continued to threaten its outlook.
Cumulatively, the sector recorded a 24.3 per cent in NPLs in August of this year, up from the 20.0 per cent it recorded in the same period of 2023.
This means that, almost a quarter of loans given by banks to their customers go bad. For instance, out of every GH¢1,000 released by the banks as loans, about GH¢250 is declared as non-performing.
The development reflects an increased default from large borrowers and indicates that elevated credit risk remains the primary concern for the sector’s outlook according to BoG.
Responding to the development, Ms Nkrumah said Access Bank acknowledged the challenge, but reassured of the bank's commitment to support SMEs.
"We recognise that NPLs are a major concern, but we believe that building the capacity of borrowers is key to solving this problem,’ she added.
To address the issue of NPLs, she said Access Bank invested in its customers through capacity-building programmes, ensuring they had the skills and knowledge to manage their finances effectively, a move that placed them in a better stead to honour their loan obligations to the bank.
"We don't just give out loans; we invest in our customers, by building their capacity, we empower them to succeed and repay their loans, reducing the risk of NPLs,” she told the Graphic Business.
The president of the Ghana Union of Traders Association (GUTA), Joseph Obeng, acknowledged the role played by Access Bank to keep SMEs alive.
He described the bank as a loyal partner to businesses, wondering what would have happened to businesses without a financial institution such as Access Bank.
Mr Obeng also commended the bank for introducing the business card that increased the limit at which SMEs could access from automated teller machines of the bank.
