Bank of Ghana has cautioned Savings and Loans Companies to closely monitor the increasing costs of interest and non-performing loans within their portfolios.

Osei Gyasi, the Head of Banking Supervision, has warned that these factors could pose financial risks and impact profitability for these companies.

During the launch of Bayport Savings and Loans’ 20th anniversary in Accra, Osei Gyasi expressed the Central Bank’s concerns regarding the quality of financial assets held by these institutions.

He assured shareholders and customers that the Bank of Ghana has identified these issues and emphasized the need for prompt action.

Osei Gyasi also provided advice to financial service providers, encouraging them to diversify their sources of funding in order to mitigate the high cost of credit.

This diversification, according to him, can help reduce reliance on a single funding stream and potentially lower borrowing costs.