Banking sector performance remained strong in first half of 2021 – BoG report

Ghana’s banking sector performance has remained strong during the first half of 2021, the Bank of Ghana has revealed.

In its recent Monetary Policy Report for July 2021 issued on the banking sector developments, data showed a rather sustained growth in total assets, deposits and investments.

“The industry’s assets expanded on

Read full articlethe back of the continued increase in total deposits during the review period.”

“However, credit growth remained sluggish due to COVID-19 effects. The regulatory reliefs and policy measures have continued to support the performance of the banking sector. This has mainly been reflected in New Advances by banks in spite of the stunted overall growth in total credit due to the pandemic.”

“Net restructured loans, undertaken by banks to provide respite for customers severely impacted by the pandemic represented some 7.7 percent of industry’s loan portfolio. Financial soundness indicators remained strong, underpinned by improved solvency, liquidity and profitability indicators," the report pointed.

"The industry’s Non-Performing Loans (NPLs) ratio however inched up due to the pandemic-induced loan repayment challenges, sluggish credit growth and bank-specific loan repayment challenges,” it added.

It continued, “On the whole, the banking industry broadly managed effects of the pandemic and the sector’s strong performance is expected to continue as the economy rebounds. Credit growth is expected to pick up, evidenced by the projected net ease in credit stance and increase in credit demand to support growth.

See the full report below: