• Total assets of the banking sector has recorded 16.7% increase for August 2021
• Growth in gross advances rose by 8.7 percent as at August 2021
• Financial Soundness Indicators (FSIs), according to the BoG also remained strong
Ghana’s banking sector still remains strong and well capitalised, according to Governor of the Bank of Ghana, Dr Ernest Addison.
The sector, the governor said, has recorded stronger growth in total assets, investments and deposits as at the end of August 2021.
Speaking at the 102nd meeting of the Monetary Policy Committee of the central bank, Dr Addison said total assets of the banking sector increased by 16.7 percent to GH¢166.4 billion as at end-August 2021, driven mainly by a 28.0 percent year-on-year growth in investments to GH¢80.3 billion.
“Growth in gross advances rose by 8.7 percent as at August 2021 from the end-June position of 5.7 percent. Strong liquidity flows during the period resulted in a 21.8 percent annual growth in total deposits to GH¢111.6 billion,” the governor added.
Touching on financial soundness of the banking sector, the central bank said its Financial Soundness Indicators (FSIs) have also remained strong over the period.
For August 2021, the industry’s Capital Adequacy Ratio was 20.7 percent well-above the regulatory minimum threshold of 11.5 percent.
“Core liquid assets to short-term liabilities was 24.7 percent in August 2021 compared with 29.0 percent a year ago. Over the same comparative period, net interest income grew by 17.9 percent to GH¢8.3 billion, marginally lower than the 18.7 percent growth a year ago,” the governor added.