In the fourth quarter of 2023, banks and Specialised Deposit-Taking Institutions (SDIs) extended secured loans with a combined value of GH¢5.9 billion, according to the Bank of Ghana (BoG)

This represents a significant decrease of 54.9% compared to the GH¢13.2 billion recorded in the same period in 2022.

Breaking down the figures from the 4th Quarter Collateral Registry Report, it is revealed that banks contributed GH¢4.5 billion to the total secured loans in Q4 2023, marking a notable decline of 63.0% from the GH¢12.3 billion reported in Q4 2022. This decline signals an overall deceleration in credit growth for the year, indicating a strategic portfolio reallocation by banks.

Conversely, SDIs experienced an uptick in secured loans, recording a total of GH¢1.4 billion in Q4 2023. This reflects a significant increase of 53.0% from the GH¢918.7 million reported in the same period in 2022.

Examining the distribution of secured loans, banks maintained the largest share in Q4 2023, accounting for 76.3% of the total value, down from 93.0% in Q4 2022. Savings and Loans Companies saw an increased share, rising to 13.3% in Q4 2023 from 4.2% in Q4 2022. Rural and Community Banks followed with a percentage share of 6.9%, up from 1.9% in Q4 2022. Microfinance Companies also experienced a rise in share, reaching 1.7% in Q4 2023 from 0.3% in Q4 2022. Additionally, Finance Houses saw a slight increase, from 0.1% in Q4 2022 to 0.5% in Q4 2023.