Secured Loans Surge 38.9% to GHS 8.2bn in Q4 2024
The total value of secured loans granted by banks and Specialized Deposit-Taking Institutions (SDIs) in Q4 2024 reached GHS 8.2 billion, marking a 38.9% year-on-year increase from the GHS 5.9 billion recorded in Q4 2023, according to the latest Quarterly Collateral Registry Brief by Bank of Ghana.
Banks Lead Growth, SDIs Expand Market Share
Banks accounted for the largest share of secured loans, registering GHS 5.7 billion in Q4 2024—a 26.7% increase from the GHS 4.5 billion recorded in the same period in 2023.
Meanwhile, SDIs recorded GHS 2.5 billion in secured loans, reflecting a 78.6% jump from the GHS 1.4 billion recorded in Q4 2023. This significant growth underscores the increasing role of SDIs in providing secured credit.
Market Share Distribution
- Banks: Held 69.5% of the total secured loan value in Q4 2024, down from 76.3% in Q4 2023.
- Savings & Loans (S&Ls): Increased their share to 17.4% from 13.3% in Q4 2023.
- Rural and Community Banks (RCBs): Grew their market share to 10.4%, up from 6.9% in Q4 2023.
- Microfinance Institutions: Recorded a slight decline in market share to 1.4%, from 1.7% in Q4 2023.
- Finance Houses: Saw a marginal dip in their share to 0.3%, from 0.5% in Q4 2023.
- Other Lending Institutions: Their cumulative share fell slightly to 1.0%, from 1.2% in Q4 2023.
The report highlights the increasing role of non-bank financial institutions in secured lending, with SDIs—particularly Savings & Loans and Rural and Community Banks—expanding their credit portfolios.
Market analysts suggest that the overall growth in secured loans signals improved access to credit and stronger confidence in collateral-backed lending, which could contribute to broader financial sector stability.
