Governor of Financial institution of Ghana, Dr. Johnson Asiama
Whole monetary sector belongings grew by 34.6% to GH₵525.59 billion in 2024 from GH₵390.17 billion (28.4%) recorded in 2023.
Nonetheless, whole monetary sector belongings constituted 45.2% of Gross Home Product (GDP) in December 2024, marginally down from 46.4% in December 2023.
In accordance with the 2024 Monetary Stability Overview, the banking business accounted for 76.4% of the sector’s whole belongings as at end-December 2024. That is in comparison with a share of 76.3% in 2023.
The pensions sector’s share improved to 16.4% in 2024, from 15.8% in 2023.
In distinction, the share of the securities and insurance coverage industries’ belongings to the sector’s whole belongings has been pretty secure over the previous 5 years. In 2024, the share of the securities and insurance coverage sectors’ belongings stood at 3.8% and three.4% in comparison with 4.0% and three.9%, respectively, in 2023.
In the meantime, the banks’ publicity to the monetary system is closely tilted in the direction of the securities business. Whole publicity of banks to different monetary establishments was roughly GH₵286 million at end-December 2024, a rise from GH₵201.91 million recorded at end-December 2023.
The exposures of banks to different monetary establishments have been within the type of loans and placements. As of end-December 2024, the publicity of banks to securities establishments, insurance coverage firms and pensions establishments was GH₵272.73 million, GH₵10.38 million and GH₵2.90 million respectively.
The distribution of banks’ publicity means that misery within the securities business can have essentially the most adversarial influence on banks.
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