Latest stress tests conducted on the banking sector by the Bank of Ghana show that banks remained resilient under mild to moderate stress conditions supported by the strong capital and liquidity buffers and the regulatory reliefs introduced during the Covid-19 pandemic.

In addition, results from the latest Credit Conditions Survey point to a potential increase in demand for credit over the next two months.

The Bank of Ghana also said commercial banks have indicated a likely softening of their credit stance to households and firms in the coming months, a development that may translate into higher credit growth to support the ongoing recovery process.

Meanwhile, the Specialised Deposit-Taking Institutions (SDIs) and Non-Bank sub sectors continued to reflect gains after the clean-up process.

In July 2021, the balance sheet of the Savings and Loans, Finance Houses, Rural and Community Banks and Micro-Finance Institutions improved, compared with July 2020.

This the regulator said was driven by a strong growth of 27.0% in deposits relative to 15.7% growth in July 2020.

Also, gross advances increased by 17.3% compared with a contraction of 19.3 percent over the same comparative period.