The total value of secured loans issued by banks and Specialised Deposit-Taking Institutions (SDIs) in the third quarter of 2024 reached GHȼ5.6 billion. This marks a 2.8 percent year-on-year growth compared to the GHȼ5.5 billion recorded during the same period in 2023, according to data from the Bank of Ghana’s (BoG) collateral registry.

Banks contributed GHȼ3.5 billion to the total secured loans in Q3 2024, a significant decline of 18.7 percent compared to GHȼ4.3 billion in Q3 2023. Conversely, SDIs showed robust growth, with secured loans rising to GHȼ2.1 billion in Q3 2024—a 75 percent increase from the GHȼ1.2 billion recorded in the same quarter of 2023.

When it comes to the distribution of secured loans, banks maintained the largest share in Q3 2024, accounting for 62.3 percent of the total, though this was a drop from their 78.8 percent share in Q3 2023. Savings and Loans Companies saw their share rise significantly to 23.4 percent in Q3 2024 from 12.7 percent a year earlier.

Rural and Community Banks also increased their share, holding 10.2 percent of the total in Q3 2024 compared to 5.3 percent in Q3 2023. Microfinance Institutions improved slightly, contributing 2.2 percent in Q3 2024, up from 1.7 percent in Q3 2023.

Finance Houses, however, experienced a marginal decline, with their share falling from 0.5 percent in Q3 2023 to 0.3 percent in Q3 2024. The cumulative share of other lending institutions rose to 1.6 percent in Q3 2024, compared to 1.0 percent during the same period in 2023.

Source: TheDotNews