Banks account for GHS 4.9bn of total GHS 5.9bn value of secured loans in Q2 2023 – BoG data
The Q2 2023 Collateral Registry Quarterly Brief by the Bank of Ghana reveals a robust upswing in secured loans during the second quarter of 2023. The data showcases a notable surge, with a year-on-year increase of 15.5 percent, raising the total value of secured loans granted and registered by banks and Specialized Deposit-Taking Institutions (SDIs) to GHS 5.9 billion, up from GHS 5.1 billion in the corresponding period of 2022.
Banks proved to be the drivers of this expansion, accounting for a significant share of the secured loans market. Their contribution reached an impressive GHS 4.9 billion in Q2 2023, marking a robust 14.8 percent surge compared to GHS 4.3 billion in the same quarter of the previous year. Banks maintained their hegemony, representing a substantial 83.7 percent share of the overall secured loans.
In parallel, SDIs demonstrated their prowess, registering a noteworthy total of GHS 971.1 million in secured loans, reflecting a remarkable 19.1 percent increase from GHS 815.0 million in Q2 2022. Their market share stood at 16.5 percent, underlining their growing influence in this domain.
Diving deeper into the distribution of secured loans, it becomes evident that banks retained their dominant position in Q2 2023, commanding a commanding 83.7 percent share. Savings and Loans (S&L) companies exhibited a notable uptick, elevating their share to 9.8 percent compared to the same quarter in the previous year. In stark contrast, Finance Houses saw a decline to a mere 0.3 percent from 0.8 percent in Q2 2022.
Microfinance Companies made incremental gains, capturing a 1.1 percent share in Q2 2023, up from 0.9 percent in the corresponding period last year. Rural and Community Banks (RCBs), however, witnessed a moderation, with their share declining from 5.1 percent in Q2 2022 to 4.4 percent in Q2 2023. The cumulative share of loans from other lending institutions also saw an uptick, rising to 0.7 percent from 0.4 percent during the same comparative period.
The latest data from the Bank of Ghana’s Collateral Registry Quarterly Brief highlights a vibrant secured loans landscape in Ghana, with banks at the forefront of this financial dynamism. As the nation’s economy continues to evolve, these insights offer a valuable glimpse into the ongoing transformations within its financial sector.
