[ad_1]
The Bank of Ghana says the banking sector remains liquid, profitable and well capitalized with strong buffers to withstand adverse shocks and support the country’s recovery efforts from the pandemic.
According to the Central Bank, the asset quality of financial intermediaries has also improved.
“The Financial Soundness Indicators and the Banking Sector Stability Index remain in highly positive territories. The industry CAR of 20.0 percent at the end of October 2020 remains well above the minimum regulatory threshold ”, it revealed in its Report of the Monetary Policy Committee of November 2020.
The latest data from the banking sector as of October 2020 indicated that total assets grew 23.7% year-on-year to GH ¢ 150,000 million, while deposits also registered an annual growth of 27% to GH ¢ 100,200 million.
Total advances also increased 13.7% year-on-year to GH ¢ 47.4 billion in the period.
On credit conditions, the Bank of Ghana said the latest survey on credit conditions conducted in October 2020 showed a net easing in the overall credit position for loans to businesses and households.
The survey results also showed that with the recovery in economic activities underway, demand for loans is also expected to increase over the next two months.
The weighted average rate on interbank loans, which is the rate at which banks lend to each other, also dropped to 13.6% in October 2020, from 15.2% in the same period last year.
The downward adjustment, according to the report, was driven by the cut in the monetary policy rate in March 2020.
Average interest rates for banks decreased significantly to 21.3% from 24.0% during the same comparative period.
