Ghana’s banks face profitability test as falling interest rates force business model shift – PwC
Key FindingsPwC's survey reveals that Ghanaian banks remain heavily dependent on interest income, with net interest income accounting for nearly 70 percent of total industry revenue.
While the decline in borrowing costs is expected to encourage private sector credit growth, it also poses an immediate risk to banks by reducing the interest income that has traditionally driven profitability."The survey warns that while lower interest rates are expected to stimulate borrowing and support economic growth, they also threaten banks' traditional earnings model by compressing net interest margins.
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