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Money outside banks reduced from a year high of 22.3 percent in March 2017 to 13.5 percent in July 2017, the lowest so far this year, the latest Summary of Economic and Financial Data of the Bank of Ghana has revealed

It stood at 20.2 percent in April 2017, 19.3 percent in May 2017 and 15.5 percent in June 2017 respectively.

At the same time, demand deposits largely current account shot up to the highest of 40.7 percent in July 2017, on account reducing interest rates on savings and time deposits.

From March 2017 to June 2017, the rates of growth of demand deposits were 31.2 percent, 29.1 percent, 16.8 percent and 30.7 percent respectively.

Growth of Savings and Time deposits however reduced consistently from March 2017-39.5 percent to 38.1 percent in July 2017.

Growth of money outside banks went down further to 14.3 percent in July 2017, from 17.4 percent in June 2017.

The report further stated that total deposits shot up consistently from GH¢52.9 percent in March 2017 to GH¢55.7 billion in July 2017.

Total assets of the banking industry stood at GH¢89.1 billion in July 2017, compared with GH¢54.5 billion at the end of June 2017.

Liquidity stood at 28.7 percent in July 2017, virtually unchanged from grew by 28.9 percent registered in June 2017. It stood at 26.6 percent in April 2017 and 23.7 percent in March 2017.
Growth of loans and advances shot up from 16.4 and 15.9 percent respectively in May and June 2017 to 17.9 percent in July 2017, about GH¢38.7 billion.

The banking sector’s capital adequacy ratio dropped from 17.8 percent in January 2017 to 14.3 percent in July 2017.

Non-performing loans stood at 20.9 percent in July 2017, a marginal decline of 0.3 percent from June 2017. The banks in Ghana made a provision of about 11.1 percent as bad debts in their books at the end of July 2017, the report reiterated.

According to the Banking Sector Report for July 2017, the June 2017 credit conditions survey indicated a general net tightening of credit conditions on loans to small and medium enterprises and large enterprises, as well as short term enterprise loans.

The survey however reported a net ease in credit stance on long-term enterprise loans for the June 2017 survey round. Banks’ credit stance on loans to households for consumer credit and other lending and for house purchases tightened slightly in the June 2017 survey round.