As you are aware, the Bank of Ghana has recently concluded the Asset Quality Review (AQR) exercise, and prescribed remedial measures both general and specific to the risk exposure of each bank to help consolidate the existing resilience of the industry and restore the affected banks. 11.
We have subsequently issued Supervisory Letters to this effect, (I believe Fidelity Bank has received theirs) with strict timelines for compliance by all. The AQR exercise highlighted impairment in banks’ loan books, capital deficiencies, credit concentration in the energy sector and some latent vulnerability in the banking industry. Banks are thus required to reclassify all downgraded facilities and book the appropriate provisions.