The total value of secured loans granted and registered by banks and Specialised Deposit-Taking Institutions in the third quarter of 2023 was estimated at ¢5.5 billion.

This is relative to ¢8.1 billion recorded in quarter 3 of 2022, indicating a decrease of 32.7% on year-on-year terms.

According to the Bank of Ghana’s 3rd Quarter Collateral Registry Report, banks accounted for ¢4.3 billion of total secured loans in quarter 3, 2023, indicating a decline of 40.8% from the ¢7.3 billion recorded in quarter 3, 2022.

On the other hand, the SDIs recorded a total of ¢1.2 billion secured loans, up by 36.4% from the ¢851.6 million recorded for the same period in 2022.

In terms of distribution of Secured Loans, banks registered the largest share of the total value of secured loans in Quarter 3, 2023, with 78.8%.

The share of secured loans by Savings and Loans Companies increased to 12.7% from 5.9% in Quarter 3, 2022. This was followed by the Rural and Community Banks with a percentage share of 5.3% from 2.8% recorded in quarter 3, 2022.

Similarly, the share of Finance Houses increased marginally from 0.3% in Q3 2022 to 0.5% in Q3 2023. The cumulative share of secured loans from the remaining lending institutions increased to 1.0% from 0.6%.

56,314 collaterals registered in Q3 2023

Meanwhile, the total number of collateral registrations recorded for quarter 3, 2023 was 56,314, compared to 43,261 registrations in the same quarter of 2022. This represented 30.2% year-on-year growth.

A breakdown of the registrations across the various categories of lenders showed that Savings and Loans Companies (S&Ls) dominated with 45,601 registrations in Q3 2023, indicating an increase of 44.2% from 31,631 registrations recorded in Q3 2022.

Registration of collateral by Rural and Community Banks (RCBs) dropped marginally by 3.5% from 6,507 registrations in Q3 2022 to 6,278 in Q3 2023.

Registrations by banks also declined by 32.2% from 2,977 in quarter 3, 2022 to 2,019 in Q3 2023. The lowest number of registrations was recorded by Finance and Leasing Companies with seven registrations in Q3 2023 compared with 9 registrations in Q3 2022.