Page last updated at Sunday, April 22, 2012 14:14 PM //
According to the central bank, the increased assets was funded mainly by deposits, which increased by GH¢3.9 billion, and net worth which went up by GH¢689.8 million. GH¢283.7 million of the increase in net worth was due to the recapitalization of banks.
The financial soundness indicators of the banking industry, the Bank says, showed that Capital Adequacy Ratio (CAR) declined to 17.4 per cent in January 2012 from 18.5 per cent in January 2011, but remained well above the prudential requirement of 10 per cent.
“Earnings performance in terms of Return on Equity, Return on Assets and Return on Earning Assets improved in January 2012 relative to a year earlier. The Non-Performing Loan (NPL) ratio of the banking industry improved from 17.2 per cent in January 2011 to 14.2 per cent in January 2012,” said Mr. Kwesi Amissah Arthur, governor of the central bank.
Mr. Amissah-Arthur said the Credit Conditions survey conducted in March 2012 showed an easing stance of credit for enterprises and mortgages. “Factors that contributed to the easing stance included banks’ ability to access market financing, maximum size of loans and margin on riskier loans,” he said.
He indicated that credit to the private sector rebounded strongly in 2012.
“On a year on year basis, total private sector credit expanded by 42.9 per cent to GH¢9 billion in February 2012, compared to a 9.6 per cent growth in February 2011. In real terms private sector credit growth was 31.6 per cent. Sectors with the highest shares of credit were Services (23.7%) and Commerce and Finance (20.6%),” he said.
According to Mr. Amissah-Arthur, broad money supply (M2+) grew by 33.2 per cent in February 2012 to GH¢18.3 billion compared to 35.9 per cent growth in February 2011 and this, he said, was driven mainly by Net Domestic Assets (NDA) of the banking system.
Commenting on interest rate trends, he said interest rates have generally trended upwards during the first quarter of 2012.
He said the 91-day Treasury bill rates increased by 194 basis points to 12.6 per cent while the 182-day Treasury bill rates went up by 161 basis points 12.9 per cent.
“The average rates on the 1-year note also went up by 160 basis points to 12.9 per cent and the 2-year fixed notes by 120 basis points to 13.6 per cent,” he said.
Mr. Amissah-Arthur said the rate on the 3-year fixed bond increased by 99 basis points to 14.99 per cent, while the 5-year fixed bond rate remained unchanged at 14.3 per cent.
He also noted that the interbank weighted average rate which had fallen to 8.1 per cent in the last quarter of 2011, rose to 12.2 per cent in the first quarter of 2012.
“The average deposit rates of banks declined to 6.9 per cent from 8 per cent a year earlier. The average base rates declined to 22.3 per cent from 22.5 per cent a year ago. Comparatively, the Annual Percentage Rates (APR) of banks remained unchanged at 28.5 per cent,” he said.
By Emmanuel K. Dogbevi