COVID-19: Banks have a lot of cash to give customers - Bank of Ghana
- The Bank of Ghana has revealed that banks in Ghana are well-positioned to give out monies to customers who wish to withdraw
- The Central Bank added that the outbreak of the COVID-19 has not affected the ability of banks to release funds
- It added that the ratio of core liquid assets to total assets has improved to 24.2% from 23.5%
Our Manifesto: This is what YEN.com.gh believes in
The Bank of Ghana (BoG) has disclosed that banks in Ghana are financially strong enough to assist customers with withdrawals.
The BoG revealed that the ratio of core liquid assets to total deposits improved to 37.3% at the end of February 2020, from 35.6% the same period in 2019.
It added that despite the economic effects of COVID-19, the ratio of core liquid assets to total assets improved to 24.2% from 23.5% over the period.
READ ALSO: EIU predicts Bank of Ghana would reduce the monetary policy rate again
The Central Bank went on to say that the strong liquid assets to deposit ratio suggest that almost 93% of all deposits could be repaid from liquid assets, including investments.
Per a report by classfmonline.com, solvency also remained strong with a Capital Adequacy Ratio (CAR) of 20.2% at the end of February 2020 well above the prudential limit of 13%.
A stronger solvency position, the BoG noted, enhances the ability of banks to deepen financial intermediation and strengthen capacity to absorb potential losses from credit, operational and market risks.
In a bid to reduce the risks associated with the COVID-19 outbreak, the Bank of Ghana lowered the prudential limit from 13.0% to 11.5%.
The rationale for the move, it said, was to ensure the removal of constraints that the high prudential CAR could pose in extending credit to the critical sectors of the economy, to support efforts at containing the COVID-19 pandemic.
In other news, 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: Banks record 38% profit in first two months of 2020 - Banking Sector Report
Enjoyed reading our story? Download YEN's news app on Google Playstore now and stay up-to-date with major Ghana news!
Reasons why some Ghanaians are not wearing the nose masks in town | #Yencomgh
Want to be featured on YEN.com.gh? Send us a message on our Facebook page or on Instagram with your stories, photos or videos
Source: YEN.com.gh
