Total assets of the Ghana banking industry has risen from GHÂÂ¢19.5 billion in July 2011 to GHÂÂ¢24.3 billion in July 2012. The increase came from five bank deposits in the country
Over the one year period to July 2012, total deposits increased to GHÂÂ¢17.6 billion from GHÂÂ¢13.8 billion, according to the Monetary Policy Committee (MPC) of the Bank of Ghana (BoG).
The MPC press statement added that the quality of the banking industry’s loan portfolio improved in the period under review. Non-performing loans ratio declined to 13.4 per cent in July 2012 from 16.4 per cent in July 2011.
The DMB’s solvency as measured by the Capital Adequacy Ratio continued to be strong and was above the statutory minimum of 10 per cent, although it declined to 15.5 per cent in July 2012 from 17 per cent in July 2011, it revealed.
The Credit Conditions survey conducted by the Bank of Ghana in July 2012 revealed tightened credit stance for enterprises and households’ credit for mortgages.
The tightening of credit stance was more pronounced for small and medium sized enterprises on account of inadequate cash flows to support repayment, weak financial performance and inadequate security.
However, the credit stance on households’ consumer credit continued to ease. Private sector credit continued to show strong growth in the first half year.
Nominal credit grew by 41.3 per cent on a year-on-year basis to GHÂÂ¢10.4 billion in July 2012, compared to 25 per cent a year ago.
In real terms, credit to the private sector recorded a 29 per cent annual growth in comparison to 15.4 per cent in July 2011.
Growth in broad money supply slowed down significantly from 42.6 per cent in July 2011 to 27.7 per cent in July 2012. The main source of change was from Net Domestic Assets (NDA) of the banking system, according to MPC latest press statement.
The growth in M2+ was reflected in foreign currency and demand deposits. Interest rates continued to trend upwards in the money market with a continued preference for medium to longer-dated instruments.
Between December 2011 and August 2012, the rates on 91-day treasury bills rose to 22.7 per cent from 10.7 per cent, while 182-day bills rates moved to 22.9 per cent from 11.3 per cent. 1-year fixed notes reached 22.5 per cent from 11.3 per cent.
Similarly, 2-year fixed notes increased to 23 per cent from 12.4 per cent. 3-year fixed notes increased to 24 per cent from 14 per cent, while 5-year bonds went up to 23 per cent from 14.3 per cent, it stated.
The interbank weighted average rate increased to 16.8 per cent in August 2012 from 6.6 per cent in December 2011.
The average 3-month deposit rate increased to 10 per cent in July 2012, from 7.8 per cent in December 2011, while average lending rates declined to 24.7 per cent from 25.9 per cent in the same period.
On a year to date basis, therefore, the lending deposit spread narrowed to 14.7 per cent in July 2012, compared to 18.2 per cent in December in 2011, it indicated.
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