Ghana banking sector firms year-on-year


Bank of Ghana

from MASAHUDU KUNATEH in Accra, Ghana
ACCRA – GHANA banks’ total assets have grown significantly over the past year, data from the Bank of Ghana (BoG) have suggested.

According to the central bank, ttal assets grew by 44, 4 percent year-on-year to GH¢42.9 billion at end of May 2014, compared with GH¢32.1
billion a year ago.

The bank said collected from January to May this year indicates that the banking sector remained sound and continued to expand.

The asset growth was on the back of advances, which accounted for 45, 1 percent and was funded largely by deposits which went up by 32,5 percent year-on-year, the central bank disclosed.

The Governor of the BoG, Dr Henry Kofi Wampah, noted that key monetary aggregates grew at a rapid pace driven largely by Net Domestic Assets of the banking sector.

“Broad money (M2+) grew by 30,8 percent year-on-year to end May 2014 at GH¢22,8 billion, compared with 17,1 percent growth in the same period last year,” he added.

“Similarly, annual growth in Reserve money was 38,2 percent in May 2014, compared with 24.5 percent growth in May 2013.

“Also during the period under review, Non-Performing Loans (NPLs) ratio declined to 12.8 percent in May 2014 compared to 13,4 percent in May 2013.

“However, NPLs (less loss provisioning) ratio remained broadly unchanged at 5.3 percent. The Capital Adequacy Ratio of banks declined to 16,7 percent in May 2014, from 18,1 percent in May 2013 on account of increased credit delivery but remained above the regulatory benchmark of 10 percent”.

However, the bank’s credit conditions survey conducted in June 2014 suggested the tightening of credit stance for most loan types including
consumer credit, small and medium enterprises (SMEs), large enterprises and short-term loans.

Interest rates on the money market generally moved upwards in tandem with the BoG’s tight monetary policy stance.

Economic activity remained fairly strong in the first quarter of 2014 despite adverse supply side shocks.

The Bank’s Real Composite Index of Economic Activity (RCIEA) rose by 9,7 percent on a year-on-year basis in the first quarter, compared with 0.5 percent growth in the same period of 2013.

The major growth drivers were Domestic VAT and Deposit Money Banks’ (DMBs) credit to the private sector.

– CAJ News





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Posted by on Jul 14 2014. Filed under Finance, Finance & Banking, Investing. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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