New Loans Surge 54% to 24.6 Billion Yen in H1 2022 – BoG

New loans granted by banks in the first six months of 2022 amounted to ¢24.6 billion, an increase of 54.0% compared to new loans recorded during the same comparative period last year (1.0% growth).

According to the Bank of Ghana Banking Sector Development Report, the year-on-year increase in gross loans and advances recorded in June 2022 mainly reflects developments in the first half of this year.

The stock of gross loans and advances increased by 33.3% (year-on-year) to reach ¢63.4 billion at the end of June 2022, compared to growth of 5.7% in June 2021.

The stronger growth in gross loans and advances in June 2022, according to the report, is reflected in both private and public sector credit.

Credit to the private sector increased by 33.7% to 57.2 billion yen in June 2022, compared to growth of 6.8% the previous year.

As a result, the private sector’s share of total credit increased slightly to 90.2% in June 2022 from 89.9% in June 2021.

Credit to the public sector also recorded growth of 29.3% to ¢6.2 billion, compared to a contraction of 2.8% the previous year.

The share of credit to the public sector, however, decreased slightly from 10.1% to 9.8%, due to the lower annual growth rate of credit to the public sector compared to the growth of credit to the private sector in June 2022 .

The services sector made up the largest share of credit in the first half of 2022

The services sector continued to have the largest credit share of 34.1% in June 2022.

It was followed by the trade and finance and construction sectors with relative shares of 21.3% and 10.2%, respectively.

According to the banking sector report, these three main sectors together accounted for 65.6% of total credit in June 2022, compared to 60.3% in June 2021.

The other economic sectors accounted for the remaining 34.4% in varying proportions in June 2022.

However, the mining and quarrying sector remained the lowest beneficiary of credit to industry with a share of 2.1% at the end of June 2022, close to the 2.2% share of the previous year.

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