Dr. Abdul Nashiru Issahaku
Total assets of banks in the country as at the end of May 2016 was GH¢66.1 billion, up from GH¢64.6 billion recorded in April, which represents 17.7 percent annual growth.
Total deposit as at the end of May 2016 was GH¢42.7billion, representing 19.3 percent growth, while total gross advances were GH¢31.4 billion, which constituted 11.3 percent of growth.
Non-performing loans (NPL) ratio of the banking system as at the end of May 2016 was 19.3 percent while capital adequacy ratio for the banking industry was 11.5 percent.
Dr. Abdul Nashiru Issahaku, Governor of the Bank of Ghana (BoG), who was speaking at the Monetary Policy Committee (MPC) press briefing recently in Accra, said the latest update of the Bank’s Composite Index of Economic Activity (CIEA) reflects some modest pickup in the second quarter of 2016 although at a slower pace than the same period last year.
He said indicators that accounted for growth in the CIEA were industrial electricity consumption, port activities and domestic VAT collections.
“Also, the latest consumer survey pointed to positive sentiments about the expected changes in household finances and the economic situation,” the Governor said.
Growth Prospects
He said growth prospects for the rest of the year would be impacted positively by the stability in the foreign exchange market, continued improvement in consumer and business sentiments and the realization of additional oil and gas production from the TEN oilfields.
However, risks to the growth outlook such as the tight credit conditions, electricity supply shortfalls and continued fiscal tightness, may moderate the pace of economic expansion.
By Cephas Larbi