The total value of secured loans granted and registered by banks and Specialised Deposit-Taking Institutions (SDIs) in the 4^th quarter of 2023 was GH¢5.9 billion.

This is compared with GH¢13.2 billion in quarter 4, 2022, indicating a decrease of 54.9% on year-on-year terms.

According to the 4^th Quarter Collateral Registry Report, banks accounted for GH¢4.5 billion of total secured loans in quarter 4 of 2023, indicating a decline of 63.0% from the GH¢12.3 billion recorded in Q4 2022.

This suggests a general slowdown in credit growth in 2023, reflecting portfolio reallocation by banks.

On the other hand, the SDIs recorded a total of GH¢1.4 billion secured loans in Q4 2023, an increase of 53.0% from the GH¢918.7 million recorded for the same period in 2022.

Distribution of secured loans

Banks registered the largest share of the total value of secured loans in quarter 4 2023, with 76.3%, relative to the share of 93.0% in Q4 2022.

The share of secured loans by Savings and Loans Companies increased to 13.3% in Q4 2023 from 4.2% recorded in Q4 2022.

This was followed by the Rural and Community Bank with a percentage share of 6.9% from 1.9% in Q42022.

The share of secured loans by Microfinance Companies also increased to 1.7% in Q4 2023 from 0.3% in Q4 2022.

Similarly, the share of the total value of secured loans by Finance Houses increased marginally from 0.1% in Q4 2022 to 0.5% in Q4 2023