Credit market set to expand with easing loan stance by banks
Banks are predicting a further easing in the overall stance on loans to households, particularly in loans for house purchases and consumer credit, according to the December 2022 Credit Conditions Survey.
This is a positive development for Ghana’s credit market, as the survey results indicate an increase in overall demand for all categories of enterprise loans, except for SME loans.
The Bank of Ghana’s report shows that banks reported a net ease in the credit stance on loans to households in November and December 2022, driven by a net eased stance on consumer credit and other lending. Meanwhile, the stance on mortgages tightened marginally.
The increase in overall demand for all categories of enterprise loans is another positive signal for the Ghanaian credit market. Banks expect this trend to continue in the first two months of 2023, with an increase in overall demand for loans being driven by higher demand for all categories of enterprise loans.
The survey also revealed a rise in credit demand by households during the survey period, which was largely driven by an increase in demand for consumer credit and mortgages.
The outlook for the next two months is also positive, with banks forecasting a further ease in the demand for both consumer credit and loans for house purchases, which is expected to drive an increase in overall demand for household loans.
The Bank of Ghana’s report indicates that the credit market in Ghana is likely to continue to grow in 2023, with banks projecting an increase in lending activity and an easing of loan stance for households.
This will have a positive impact on the broader Ghanaian economy, with increased access to credit likely to stimulate business growth and investment.
Overall, the results of the December 2022 Credit Conditions Survey suggest a positive outlook for Ghana’s credit market in the coming year, as banks are poised to provide more credit to households and enterprises alike. This will help support economic growth and development in the country.
