Secured Loans Hit GHS 5.6 Billion in Q3 2024, Up 2.8% Year-on-Year
The total value of secured loans granted by banks and Specialised Deposit-Taking Institutions (SDIs) in the third quarter of 2024 amounted to GH¢5.6 billion, marking a 2.8% increase compared to the GH¢5.5 billion recorded in the same period in 2023.
According to the Q3 2024 Collateral Registry Brief by the Bank of Ghana, banks contributed GH¢3.5 billion to the total secured loans, representing an 18.7% decline from the GH¢4.3 billion recorded in Q3 2023.
In contrast, SDIs saw significant growth, disbursing GH¢2.1 billion in secured loans during Q3 2024, a 75.0% surge compared to GH¢1.2 billion in the prior year.
Banks Retain Majority Share Despite Decline
Banks continued to dominate the secured loans market in Q3 2024, accounting for 62.3% of the total value, although this was a reduction from 78.8% in Q3 2023.
Savings and Loans Companies followed, with their share climbing to 23.4% in Q3 2024 from 12.7% a year earlier.
Rural Community Banks (RCBs) increased their share to 10.2%, up from 5.3% in Q3 2023, while Microfinance Institutions recorded a modest rise to 2.2%, from 1.7% in the same period last year.
Conversely, Finance Houses saw their share of secured loans drop to 0.3% in Q3 2024, compared to 0.5% in Q3 2023. The combined contribution of other lending institutions edged up to 1.6% from 1.0% over the same period.
Sector Outlook
The report underscores a shift in lending dynamics, with SDIs increasing their participation in the secured loans market as banks scale back their exposure.
This trend highlights the growing role of alternative financial institutions in addressing credit demand across diverse sectors of the economy.
