The banking sector is projected to deliver a stronger performance in the coming years.
This is according to the 2019 Banking Sector Report released by the Bank of Ghana (BoG).
According to the 16-pages report, there would be continued improvement in the key Financial Soundness Indicators (FSIs).
It said “the gradual recovery in credit growth is expected to be sustained on the back of strong deposit growth and sufficient capital levels.”
In addition, it observed, further improvement in asset quality is projected, with banks’ strengthening credit risk management processes and intensifying loan recovery efforts.
The report provides an assessment of the performance of Ghana’s banking sector based on the aggregated financial statements of the sector, which consists of 23 banks as at August 2019.
The review shows that significant gains have been made since the onset of the banking sector reforms two years ago, the report said.
It added that in particular, a well-capitalized, solvent, liquid and profitable banking sector has emerged with improved financial soundness indicators.
According to the report, asset growth is robust.
It revealed that total assets of the banking sector amounted to GH¢ 115.18 billion as at end August 2019, recording an annual growth of 10.1 percent.
Domestic assets which constitute a larger proportion of total assets, increased by 12.9 percent to GH¢105.76 billion while foreign assets contracted by 14.0 percent on account of reductions both banks’ nostro balance sheets and placement abroad.