Banks recorded a stronger annual growth in total assets in February 2020 compared with a year earlier, the Bank of Ghana’s banking sector report has stated.

According to the report, the total assets of the banking sector amounted to GH¢128.33 billion in February 2020 representing a year-on-year growth of 17.8 percent compared to 14.5 percent recorded in February 2019.

The strong growth in total assets reflected in both domestic and foreign assets.

The report said, the more pronounced growth of 18.7 percent in domestic assets compared to the 8.2 percent increase in foreign assets resulted in the share of domestic assets in total assets inching up from 91.5 percent to 92.2 percent over the period.

The strong growth in total assets was on the back of a rebound in credit growth. Gross loans and advances rose by 26.0 percent to GH¢45.91 billion in February 2020, following a subdued growth of 1.9 percent a year earlier.

Similarly, net loans and advances grew by 27.2 percent to GH¢40.47 billion against a marginal pick-up of 4.8 percent in February 2019.

The rebound in credit growth underscores the positive impact of higher capital levels and sustained deposit growth in supporting intermediation.
The report says the cedi equivalent of foreign currency loans (net) went up slightly by 6.0 percent, indicating a decline in foreign currency loans in real terms during the period under review.