Dr. Henry Kofi Wampah, Governor of the Bank of Ghana
Total assets of the banking industry as at the end of November 2015 was GH¢61.1 billion, representing a 21.5 percent growth.
Total deposit as at the end of November 2015 was GH¢38.7billion, representing 28 percent growth, while total gross advances were GH¢29.5 billion which represented 20.9 percent growth.
Non-performing loans (NPL) ratio of the banking system as at the end of November 2015 was 14 percent while capital adequacy ratio for the banking industry was 17.6 percent.
Dr. Kofi Wampah, Governor of the Bank of Ghana (BoG), who was speaking at the Monetary Policy Committee (MPC) press briefing recently in Accra, said the Bank’s Composite Index of Economic Activity (CIEA) for November 2015 indicated a slower pace of growth compared with the same period in 2014.
“However, in the medium term, growth conditions are expected to recover, supported by a sustained improvement in the energy situation, anticipated increased production of oil and gas and a general improvement in the macro-economic environment.
“These notwithstanding, there are risks to the growth outlook. These include continuing tightness in the monetary and fiscal policy stance, weak consumer confidence, falling commodity prices and a slack in global growth,” he said.
Foreign Exchange Market
Dr Wampah said the foreign exchange market has been relatively stable, supported by the tight monetary and fiscal policy stance, inflows from donors, pre-export finance facility for cocoa and proceeds from the Eurobond issue.
“In 2015, the Ghana cedi depreciated by 15.7 percent compared to 31.3 percent recorded in 2014.
“Maintaining the tight policy stance, smoothening the supply of foreign exchange and enforcing the repatriation of export proceeds into the banking system, in line with the Foreign Exchange Act, are expected to moderate the seasonal volatilities usually experienced in the first half of the year,” he said.
By Cephas Larbi