The banking sector report for first-half of the year has shown that customers are now reposing confidence in the banking sector – after a difficult 2018 which led to a lot of panic-withdrawals following the banking sector cleanup.
The Bank of Ghana (BoG) report on activities of the sector shows that banks’ deposits have increased by 22.3 percent to GH¢75.57billion for end-June 2019, as deposits outperformed the previous year’s performance.
The situation looks more positive when disaggregated into domestic and foreign deposits. Domestic deposits formed the largest component of total deposits as it grew by 22.5 percent on an annual basis to GH¢75.2billion, compared with 13.4 percent growth a year ago. The situation was however different at the end of last year, when banks’ deposit growth dipped to 17.4 percent in December from 18.4 percent the previous month.
Foreign currency deposits also grew by 37.9 percent in June 2019 to GH¢21.63billion against 6.8 percent growth recorded in June 2018, partly attributed to depreciation of the Ghana cedi. Continue reading…