Banks investments grew by 19.2% to GH¢107.2 billion in June 2024, up from a growth of 11.0%t in June 2023, the July 2024 Monetary Policy Report has revealed.
The performance was due to a significant growth in both short-term and long-term instruments.
The growth in investments reflected a 7.3% growth in short-term bills, from a growth of 149.6% in June 2023, while long-term investments (securities) also grew by 28.6% in June 2024, having contracted by 23.2% in June 2023.
The mixed growth in both bills and securities investments, according to the report, culminated in a reduced share of investments in total assets to 33.2% in June 2024, from 37.1% in June 2023.
Meanwhile, deposits remained the main source of funding for the banking sector, accounting for 76.1% share of total assets in June 2024, from 77.4% in June 2023.
It improved by 31.1% to GH¢245.9 billion in June 2024, as against 42.8% growth recorded in June 2023. The foreign currency component of deposits grew by 29.8% to GH¢81.2 billion in June 2024, relative to a growth of 62.5% in June 2023.
This suggests some currency depreciation effect on the overall growth in total deposits. Borrowings also picked up by 44.4% to GH¢23.2 billion in June 2024, up from 39.1% contraction recorded in June 2023.
Credit: Joy Business