Ghana’s Total Banking Assets Up By 30.9%

Governor of Bank of Ghana, Dr. Ernest Kwamina Yedu Addison
Governor of Bank of Ghana, Dr. Ernest Kwamina Yedu Addison

Total assets of banks operating in Ghana have risen significantly at the time that the Ghanaian economy is reported to be recovering.

 From April 2016 to April this year, the country’s total banking assets increased by 30.9 percent to GH¢84.5 billion compared to an asset base of GH¢64.6 billion as at April 2016.

The growth in assets was driven mainly by domestic deposits, which increased by 28.4 percent (GH¢11.7 billion) in April 2017.

The Governor of the Bank of Ghana (BoG), Dr Ernest Addison who this disclosed, noted that the banking system recorded strong asset growth in the year to April 2017 which is good for the economy.

He added that the pace of economic activity has picked up, driven mainly by growth in private sector credit, improved business sentiments and easing credit stance.

Furthermore, increased oil production from both Jubilee and Tweneboa, Enyenra, Ntomme (TEN) fields and the coming on stream of further activity in the oil and gas sector from the Sankofa Gyenyame Ntomme (SGN) fields by the third quarter should give added impetus to overall growth prospects.

“In sum, there is evidence to suggest that the economic imbalances that existed at the end of 2016 are giving way to stronger fundamentals with economic activity expected to pick up strongly in the period ahead, albeit below potential”, Dr Addison said.

The 2017 budget indicates a return to the path of fiscal consolidation. The reduction in the fiscal deficit for the year is expected to foster more stable macroeconomic conditions. Rigorous and steadfast implementation of the budget will therefore be critical to the outlook.

The volatility in the foreign exchange market observed at the last Monetary Policy Committee (MPC) meeting has eased significantly, supported by improved foreign exchange liquidity conditions and the outturn in the trade balance, with a more positive outlook based on significant expected inflows.

Cumulatively, the Ghana Cedi has depreciated by 1.0 percent against the US dollar in the year to 18th May 2017, compared with 3.5 percent reported at the last MPC round.

African Eye Report

 

 

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