The Bank of Ghana has reported a contraction of total borrowing in the banking sector during the first half of the year.

In its Monetary Policy Committee Press Release dated 24th July, 2023, the Central Bank revealed that total borrowings declined by 39.1 percent to GH¢16.0 billion comparedwith GH¢26.4 billion a year earlier.

Total deposits on the other hand, grew significantly by 42.8 percent to GH¢187.6 billion in June 2023.

In the period under review last year, total deposits grew to GH¢131.3 billion, representing 19.1 percent growth.

The banking sector's total assets as at June 2023 was GH¢242.4 billion, showing a moderation in growth of 21.2 percent from 22.8 percent in June 2022.

According to the Bank of Ghana, data submitted by banks for the first half of 2023 reflected the lingering effects of the Domestic Debt Exchange Programme (DDEP), notwithstanding the strong rebound in profitability following significant losses incurred at year end 2022 on account of impairments of holdings in government of Ghana bonds.

Meanwhile, the banking industry’s investments increased sharply, supported by significant growth in deposits.

Total investments rose to GH¢89.9 billion in June 2023 from GH¢ 81.0 billion in June 2022, made up of short-term investments which grew by 149.6 percent to GH¢39.9 billion, from GH¢15.9 billion last year, while medium-to-long term investments declined to GH¢50.1 billion from GH¢65.0 billion, as a result of portfolio rebalancing following the DDEP.

Source: The Independent Ghana