It seems that lost confidence has been regained in the country’s banking sector as a report from the Bank of Ghana (BoG) has shown that deposits has grown in the past six months after the industry went through some reforms. Take a look inside our blog to find some articles in that way.
The Bank of Ghana (BoG) report on activities of the sector shows that banks’ deposits have increased by 22.3 percent to GH¢75.5 billion as at end-June 2019, outperforming the previous year’s figures.
This comes as good news to the economy and depositors as last year was a very difficult period for banks given the many panic withdrawals that hit the sector following the collapse of some banks.
It is even more encouraging to know that the a chunk of the deposits came more from domestic depositors. Domestic deposits grew by 22.5 percent on an annual basis to GH¢75.2 billion compared with 13.4 percent growth a year ago.
Foreign currency deposits also grew by 37.9 percent in June 2019 to GH¢21.6 billion against 6.8 percent growth recorded in June 2018, partly attributed to depreciation of the Ghana Cedi.
The Bank of Ghana says the growth in deposits can only be attributed to nothing but “increasing confidence and stability in the banking sector following the reforms”.
Besides the growth in deposits, the report also indicated that profitability of banks experienced upward movement and improved compared to same period last year. The industry recorded an after-tax profit of GH¢1.67 billion, representing a year-on-year growth of 36.3 percent compared with 21.7 percent in the same period last year.
The strong profit performance, the report said, was underpinned by higher growth of net interest income. Net interest income grew by 20.7 percent reflecting both higher interest income from investments and lower interest expenses from reduced borrowings.
We want our tenants at Green Views to know that the banking sector is now safe and no fears should be entertained when making deposits.