"Finance Houses record highest average lending rate of 59.2% in Q2 2023"

" Finance Houses record highest average lending rate of 59.2% in Q2 2023 \r\n\r\nAccording to the Q2 2023 Collateral Registry Quarterly Brief by the Bank of Ghana, the average lending rates for secured loans varied across lending institutions.\r\n\r\nLeasing Companies had the lowest average rate at 12.1 percent in Q2 2023, down from 14.7 percent in Q2 2022.\r\n\r\nBanks recorded a rate of 26.9 percent in Q2 2023, up from 20.9 percent in Q2 2022, while Finance and Leasing Companies increased to 29.3 percent from 20.0 percent in the same period.\r\n\r\nRural and Community Banks (RCBs) saw an increase to 35.1 percent from 32.4 percent in Q2 2022. Savings and Loans (S&L) companies recorded a rate of 44.2 percent in Q2 2023, down from 45.2 percent in Q2 2022.\r\n\r\nFinance Houses had the highest rate at 59.2 percent in Q2:2023, up from 49.5 percent in Q2:2022.\r\n\r\nIn terms of borrower classification, large private enterprises accounted for 66.4 percent of secured loans in Q2 2023, up from 51.5 percent in Q2 2022.\r\n\r\nIndividual borrowers constituted 15.7 percent during the review period, a slight increase from 15.5 percent in Q2 2022.\r\n\r\nSecured loans to Private Enterprises \u2013 SMEs - declined marginally to 15.6 percent from 15.7 percent in Q2 2022, while secured loans to Micro Businesses increased marginally to 1.2 percent from 1.1 percent in Q2 2022.\r\n\r\nSecured loans to Public Institutions accounted for 0.6 percent in Q2 2023, an increase from the previous year.\r\n\r\nThe majority of secured loans were extended to large private enterprises, indicating a significant share of loans in Q2 2023.\r\n\r\nMeanwhile, the report\u00a0reveals 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.\r\n\r\nBanks 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.\r\n\r\nIn 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.\r\n\r\n "

"Finance Houses record highest average lending rate of 59.2% in Q2 2023"

Oil Prices Set for Dramatic Weekly Drop on Tariff FalloutAMP

Manchester United Unveils £50 Million Upgrade to Carrington Training Complex Ahead of New SeasonAMP

Formula 1’s Wild 2025 Season: Seat Swaps, Dramatic Comments, and Historic PodiumsAMP