Banks’ investment portfolio as of the end of April 2022 remained in favour of long-term debt instruments (securities).
This is in a response to higher interest rates on the long-term instruments compared to rates on money market instruments.
According to data from the Bank of Ghana, the share of securities increased to 78.4% in April 2022, from 71.6% in April 2021.
The share of short-term bills in total investments, however, declined to 21.3%, from 28.1% during the same comparative period.
The share of bills may, however, increase as banks move to the shorter end of the market to take advantage of the increasing yields in that segment of the market following the recent hikes in the Monetary Policy Rate (MPR).
The share of equity investments remained insignificant at 0.3%.
Investments tilted less risky assets
Importantly, the asset and liability structure of the banking industry remained tilted towards less risky assets at end of April 2022.
Investments comprising bills, securities and equity grew by 14.5% to ¢83.9 billion as at end-April 2022 compared to a growth of 34.9% in April 2021.
The Central Bank however said though investments continued to dominate the asset mix, its share declined from 47.0% in April 2021 to 43.2% in April 2022 while the share of “Cash and Due from banks” increased from 18.6% to 21.7% during the same comparative period.
Loans and advances remain 2nd largest component of banks assets
Loans and advances (net), however, remained the second largest component of banks’ assets.
It recorded a higher share of 27.4% in April 2022, from 26.5% in the previous year on account of the stronger growth in credit in April 2022.
Latest Stories
-
Australians call for tougher laws on violence against women after killings
7 mins -
African Development Council establishes mission in Benin for Francophone countries
17 mins -
Okyeame Kwame reveals his secret to longevity in music industry
22 mins -
Youthful-looking 60-year-old woman qualifies for Miss Argentina contest
26 mins -
Ejisu By-Election: Campaign heats up as NPP holds final rally ahead of Polls on Tuesday
29 mins -
Rwanda plan: Irish government wants to send asylum seekers back to UK
48 mins -
Ice cubes now cost more than bread and milk in parts of Mali
2 hours -
Titanic gold pocket watch sells for £900,000
3 hours -
Elon Musk in China to discuss enabling full self driving – reports
3 hours -
Foreign Affairs Ministry advises against travelling to Northern Mali
4 hours -
After dating him for three years, I proposed to my husband
4 hours -
Beatrice ‘Bee’ Arthur tackles plastic pollution through artistic exploration
4 hours -
Hundreds turn out for Luv FM/Telecel Fitness Walk in Kumasi
4 hours -
Ghana Post launches Asantehene Commemorative Stamp
4 hours -
Police fire tear gas to disperse Benin wage protest
5 hours