The 2020 PwC Banking Sector Survey has revealed that the concentration of the banking industry’s operating assets in five banks threaten the stability of the industry, in the event of systemic defaults. The banks are Ecobank, GCB, Fidelity, Standard Chartered and Absa.
The report said over 45% percent of the banking industry’s operating assets is concentrated in the five aforementioned banks.
It therefore called for a stronger supervision by the Bank of Ghana since an immediate dilution is not likely, but in common with more matured markets.
Fidelity, Stanchart, Absa and Ecobank contributed in excess of GHS2 billion each to the GHS21.5 billion increase in the industry’s operating assets.
Also, Fidelity and Ecobank increased their operating assets by 51% and 21% to about GHS10.1 billion and GHS11.8 billion respectively.
Both banks continued to hold significant investments in liquid assets.
With regard to the market share, Ecobank dislodged GCB as the number one bank in the country in terms of deposits.
GCB came second whilst Stanchart, Consolidated Bank and Absa placed third, fourth and fifth respectively.
At the bottom in 18th and 19th were FBN and First National Bank which together controlled a small 1.5 percent of the market share.
First Atlantic Bank, UMB, Omni-Sahel and NIB were however not surveyed.
In terms of the share of the industry advances, Ecobank was still the market leader.
It was followed by Absa and Stanchart.
The 2020 Banking Survey was titled “The new normal: Banks’ response to COVID-19”.
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