Ghana’s banking sector is showing signs of recovery as deposits have increased for two consecutive months following a drop from the latter part of 2018, the Summary of Economic and Financial Data has revealed.

The data, which was published by the Bank of Ghana, shows that banks’ total deposits increased to GH¢71.9 billion in February 2019 from GH¢70.5 billion the previous month, translating into a 20 percent increment, the highest since October last year when it increased by 20.8 percent.

Compared to the same period last year (February 2018), banks’ deposits were GH¢59.9 billion which is a 7.4 percent lower growth than record this time around.

Banks’ deposits as of the end of 2018 was GH¢68.3 billion, a dip in annual growth rate to 17.4 percent from the 18.4 percent recorded in November. This, some financial analysts, blamed on what they called a ‘radical’ approach by the central bank to clean-up the banking sector which led to the revocation of licences of five banks, triggering many panic withdrawals across the country.

Financial analysts have said the growth in deposits shows that confidence is being restored after the Bank of Ghana introduced reforms which included a GH¢400 million minimum capitalization, corporate governance directives, fits and proper tests, among others.

The Governor of the Bank of Ghana Dr. Ernest Addison has said the next phase of the reforms will happen in the microfinance sector by end of the second quarter of the year. He said it will cost the economy some GH¢700 million.