Dr. Ernest Addison
THE TOTAL assets of the Ghanaian banking sector increased to GH¢129.06 billion at the end of December 2019.
The Governor of Bank of Ghana (BoG), Dr. Ernest Addison, made this known to the media on Friday, January 31, 2020 in Accra.
He was addressing a press conference after the Monetary Policy Committee (MPC) of the central bank earlier last week met and deliberated on the recent global and domestic economic conditions, reviewed the latest macroeconomic projections, and subsequently took a decision on the positioning of the Monetary Policy Rate.
The GH¢129.06 billion represents a 22.8 per cent year-on-year growth, says the Governor.
He disclosed that the increased total assets was on account of significant growth of 22.2 per cent year-on-year in deposits to GH¢83.46 billion
That, he observed, underscored renewed confidence in the banking sector.
“The industry’s Capital Adequacy Ratio, computed in accordance with the Capital Requirement Directive under the Basel II/III capital framework, stood at 17.5 per cent at the end of December 2019, and above the 13 per cent minimum regulatory benchmark,” he said.
“Asset quality also improved significantly and the NPL ratio declined sharply to 13.9 per cent in December 2019 from 18.2 per cent in December 2018, reflecting increased loan recoveries, write-offs, and higher credit growth,” he added.
According to him, the banking industry has built up a much stronger balance sheet and recorded strong asset growth, improved quality of loans and profitability during the year.
“All the financial soundness indicators measured in terms of earnings, liquidity, and capital adequacy remained strong. Total assets of the banking sector increased to GH¢129.06 billion at the end of December 2019, representing a 22.8 per cent year-on-year growth,” he said.
“The increased total assets was on account of significant growth of 22.2 per cent year-on-year in deposits to GH¢83.46 billion underscoring renewed confidence in the banking sector.
“The industry’s Capital Adequacy Ratio, computed in accordance with the Capital Requirement Directive under the Basel II/III capital framework, stood at 17.5 per cent at the end of December 2019, and above the 13 per cent minimum regulatory benchmark,” Dr. Addison added.
Asset quality, he noted, also improved significantly and the NPL ratio declined sharply to 13.9 per cent in December 2019 from 18.2 per cent in December 2018, reflecting increased loan recoveries, write-offs, and higher credit growth.
BY Melvin Tarlue