This report details the performance of Ghana’s banking sector during the first half of 2019 compared to the same period last year. The sector consists of 23 banks with 1,225 branches spread across the 16 regions of the country as at June 2019.
The half year performance showed that the banking sector was well-capitalised, solvent, liquid and profitable with improved financial sector indicators. Asset growth remained strong underpinned by sustained growth in deposits and higher capital levels.
Also, credit growth post-recapitalisation continued to pick up alongside increased after-tax profits. Key Financial Soundness Indicators (FSIs) also improved in response to the banking sector reforms.
The industry’s Capital Adequacy Ratio (CAR) measures, both under Basel 1.5 and the new Bank of Ghana Capital Requirement Directive (CRD) under the Basel II/III capital framework remained well above the statutory minimum of 10 percent and 13 percent respectively, pointing to increased resilience of the sector following the recapitalisation.
The higher CAR levels reflect a sufficiently solvent industry, with enhanced capacity to absorb shocks arising from the expected deepening in financial intermediation.