The total assets of the banking sector have increased by 22.8 percent to GH¢200.0 billion at the end of June 2022, the Bank of Ghana (BoG) has revealed.
The central bank’s July 2022 Banking Sector Development Report revealed that this year’s growth exceeds the 17.2% recorded in 2021.
The Banks’ balance sheet shows that the domestic component of total assets recorded a higher growth rate of 23.5 percent in June 2022, compared to a growth of 18.0 percent in the previous year.
According to the report, foreign assets grew by 12.2 percent, relative to a growth of 6.7 percent under the period under review.
However, the report added that “the share of foreign assets in total assets declined to 6.0 percent from 6.6 percent, while that of domestic assets increased from 93.4 percent to 94.0 percent on account of the higher growth in domestic assets during the reference period.”
Also, the share of investments in total assets declined in June 2022.
Annual growth in investments moderated to 7.1 percent in June 2022 from 28.8 percent in June 2021 due to contraction in short-term bills and a moderation in growth in long-term securities over the review period.
Nonetheless, investments (GH¢81.1 billion) remained the largest component of total assets as at June 2022.
“The higher growth in the industry’s assets in June 2022 was mainly on the back of increases in deposits and
borrowings during the review period. Deposits recorded a robust growth of 19.1 percent to GH¢131.3
billion as at end-June 2022, albeit lower than the 22.5 percent growth recorded a year earlier,” the report added.
Meanwhile, borrowings continue to increase, registering a year-on-year growth of 53.6 percent to GH¢26.4 billion in June 2022.
For the central bank, the banking sector has posted a strong balance sheet performance at the end of the first half of the year.
Source: The Independent Ghana
