Dr. Johnson Pandit Asiama
Ghana’s total financial sector assets grew significantly in 2024, rising from GH₵390.17 billion in 2023 to GH₵525.59 billion, which represents a jump of 34.6 per cent, according to the 2024 Financial Stability Review Report.
Despite the strong growth, the sector’s share of the economy dipped slightly, with total assets representing 45.2 per cent of Gross Domestic Product (GDP) in December 2024, down from 46.4 per cent the previous year.
The annual review, which assesses developments in the country’s financial system and measures taken to address emerging stability risks, is jointly produced by the Bank of Ghana (BoG), Ministry of Finance, National Insurance Commission (NIC), Securities and Exchange Commission (SEC), National Pensions Regulatory Authority (NPRA), Ghana Deposit Protection Corporation (GDPC), and the Financial Intelligence Centre (FIC), under the Financial Stability Council (FSC).
The report highlighted the banking sector’s dominance, noting that it accounted for 76.4 per cent of the total financial sector assets as of end-December 2024, up slightly from 76.3 per cent in 2023. It said growth momentum in total assets improved during the year.
The report indicated that banks’ exposure to the financial system remained concentrated in the securities industry, whilst total exposure of banks to other financial institutions stood at GH₵286 million in December 2024, an increase from GH₵201.91 million in 2023.
Other financial institutions also deepened their engagements with banks, holding GH₵11.56 billion in deposits and investments at the end of 2024, compared to GH₵8.14 billion a year earlier.
The securities industry recorded the highest exposure to banks, with GH₵5.9 billion in December 2024, representing an 81.4 per cent increase. Insurance companies followed with GH₵3.1 billion, while pension institutions accounted for GH₵2.6 billion, the report noted.
By Ebenezer K. Amponsah