Total assets of banks operating in Ghana shot up to GHS84.5 billion, representing an increase of 30.9 percent in April 2017 from GHS64.6 billion recorded in same period last year
The upturn in domestic deposits remain the main driver of the recorded growth in assets to GHS 11.7 billion in April 2017, representing a 28.4 percent increase over the same period last year.
Governor of the Bank of Ghana (BoG), Dr Ernest Addison who disclosed this at this month’s Monetary Policy Committee meeting, noted the recorded growth was a strong showing of the banking system in 2017.
”The banking system recorded strong asset growth in the year to April 2017. Total asset base increased by 30.9 percent to GHS84.5 billion compared to an asset base of GHS64.6 billion as at April 2016. The growth in assets was funded mainly by domestic deposits, which increased by 28.4 percent (GHS11.7 billion) in April 2017.”
The Governor mentioned growth in private sector credit, improved business sentiments and easing credit stance as main drivers that have contributed to the pace of economic activity picking up.
Overall growth prospects, according to him, is expected to receive added impetus on the back of increased oil production from both Jubilee and Tweneboa, Enyenra, Ntomme (TEN) fields and the coming on stream of further activity in the oil and gas sector from the Sankofa Gyenyame Ntomme (SGN) fields by the third quarter.
Dr Addison acknowledged the gradual reversal of the imbalances in the economy over the last year stating: “In sum, there is evidence to suggest that the economic imbalances that existed at the end of 2016 are giving way to stronger fundamentals with economic activity expected to pick up strongly in the period ahead, albeit below potential.”
He said the 2017 budget signals a commitment to the path of fiscal consolidation but cautioned a rigorous and steadfast implementation of the budget to realise such an outlook. The reduction in the fiscal deficit for the year is expected to foster more stable macroeconomic conditions.
Dr Addison reported a significant ease in volatility in the foreign exchange market compared to the previous month sustained by improved foreign exchange liquidity conditions and the outturn in the trade balance, with a more positive outlook based on significant expected inflows.
The Governor said the Ghana Cedi experienced a cumulative depreciation of some 1.0 percent against the US dollar in the year to 18th May 2017, compared with 3.5 percent reported at the last MPC meeting.
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