Banking Industry Sees Growth in Assets

The banking industry of the country has witnessed massive development in its assets, recording a 4.4 per cent growth at the end of March 2008.
Total assets of the banking industry recorded GH¢8,437.7 million in May this year, compared to GH¢6,156.6 million of the previous year.
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The banking industry has over the period, shifted their attention from investing in financial assets, to lending to the private sector, a situation the Governor of the Bank of Ghana, Dr. Paul Acquah, says has resulted in the decline of assets invested in government securities.
According to the Governor, since the abolishing of the secondary reserve requirements in the country, the banking industry's investments in government securities had declined from 15.6 per cent in May 2007, to 1.6 per cent in May this year.
This, he said, was mainly funded by deposits, which amounted to GH¢5,499.4 million, representing a growth of 3.3 per cent over the level recorded in March 2008.
This feat, by the banking industry, represents an annual growth of 38.5 per cent. Savings and Time deposits increased by 37.0 per cent, to GH¢2,004.9 million in the twelve month period to May 2008, compared with GH¢1,463.0 million, representing 54.5 percent for the same period, in the previous year (2007).
The Governor of the Central Bank further noted that foreign currency deposits, also increased by 33.2 per cent, to the equivalent of GH¢1,273.9 million in the twelve month period to May 2008, compared with GH¢955.3 million, representing 32.9 per cent recorded for the same period, in the year 2007.
That notwithstanding, the banking industry's loan portfolio remained strong, whilst Non-Performing Loans (NPL), which stood at 8.7 per cent at the end of March 2008, inched up to 8.8 percent at the end of May 2008.