Managing Director of GCB Bank, Farihan Alhassan, has defended the bank’s continued push into lending to small and medium-sized enterprises (SMEs), insisting that risk is unavoidable if banks are to drive real economic growth.
Speaking on Joy News’ PM Express Business Edition on Thursday, he rejected the notion that SMEs should be sidelined because of their risk profile.
“We can’t run away from supporting customers because we think that they are risky. It’s our job as a Bank to see how we can work with these customers to address some of the risks that we see in their businesses.”
He argued that GCB’s approach goes beyond conventional banking and focuses on long-term partnerships with clients.
“So whilst others see them as customers, we see them as partners. We are partners on a journey to growing these businesses, and we have to take that risk on them.”
Mr Alhassan maintained that the bank is committed to helping businesses become creditworthy rather than excluding them.
“So we’re not going to run away from them because we don’t want to create bad loans. If the business is bad, we would work to make it good so they can assess the credit.”
He questioned who would support such businesses if banks withdrew.
“But you just can’t run away from them because you say it’s a bad business. Who then would support those kinds of business?”
According to him, the bank’s success should not be measured solely by profit but by its broader economic impact.
“Don’t forget that our measure as a bank is not in how much money we make, but in how many lives we touch and how many businesses we grow.”
He explained that the bank is increasingly focused on how its financing translates into business expansion and job creation.
“So today, if a business made a profit of GH¢200 million, the question was asking us, how did our support enable that business to meet the ¢200 million?”
“If a business employs 20 people, our concern should be, how then do we support this business to employ 40 people?”
Mr Alhassan stressed that lending is not just about disbursing funds but about building sustainable enterprises.
“So our job as GCB is not just to give our loans, it’s to see how we grow our customers to become bigger and for them to realise their dreams in the broader financial context.”
Addressing concerns about shareholder returns, he said growth in client businesses ultimately benefits the bank.
“When the businesses grow, you grow with them.”
He added that GCB’s strategy aligns with Ghana’s economic direction.
“We believe that GCB is not just any other bank. We have to be seen to play in the real sector of Ghana’s economy, and so we’re just following the economic trajectory of this country.”
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