- The March 2020 Banking Sector report shows that an increasing number of banks are giving out more deposits as loans
- The Report shows that total borrowings increased by 30.7% compared with a decline of 6.3% in February 2019
- It also revealed that gross loans and advances increased by 26% to reach GHC45.91 billion in February 2020
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A Banking Sector Report has proven that a growing number of banks in Ghana are giving out more deposits as loans to businesses.
The March 2020 report revealed that over half of the deposits to banks between February 2019 and February 2020, were given out as loans.
This, YEN.com.gh has learned, is an indication of the readiness of banks to support the private sector with access to capital for expansion.
READ ALSO: Latest Bank of Ghana report shows there is an economic slowdown in Ghana
According to thebftonline.com, the Report also indicated that the banking industry’s loan-to-deposits (gross loans to total deposits), which is a key measure of financial intermediation, increased to 55% from 51% within the stated period.
This led to an increase in total borrowing and compelled banks to resort on additional borrowing to support the expansion of credit.
Correspondingly, total borrowings increased by 30.7% compared with a decline of 6.3% in February 2019; whereas the share of deposits dipped to 64.8% from 66% over the two corresponding periods.
It has also been gathered that gross loans and advances increased by 26% to reach GHC45.91 billion in February 2020, as against the marginal growth of 1.9% during the same period in 2019.
Meanwhile, the April 2020 Banking Sector Report shows that banks in Ghana recorded a 38% profit in the first two months of the year 2020.
It was higher than the 31.5% recorded in the first two months of the preceding year.
The upsurge in profit was recorded despite the outbreak of the coronavirus which has affected economies globally.
READ ALSO: Commercial Banks realized a GHC3.3.billion profit in 2019 - Bank of Ghana
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