This report details developments and performance of Ghana’s banking sector during the first four months of 2019 compared with the same period last year.
The sector consists of twenty three (23) banks with a total number of 1,225 branches spread across the sixteen (16) regions of the country as at April 2019, compared with 1,546 in April 2018.
The reduction in the number of branches is attributed to branch rationalisation following the banking sector reforms. Asset growth of the industry remained strong underpinned by increased deposit mobilisation and high capital levels.
Credit growth continued to pick up on the back of enhanced banks capital positions. Profitability indicators of the banking sector also improved over the first four months.
The resilience of the recapitalised industry has been enhanced with a Capital Adequacy Ratio (CAR) of 17.4 percent under the new Capital Requirement Directive (CRD) in the Basel II/III framework.
This is indicative of the fact that banks are sufficiently solvent, even under more stringent capital adequacy criteria. The improved solvency position of the industry strengthens its capacity to absorb shocks as financial intermediation deepens going forward.
