Total financial system assets expanded in 2019 – BoG

0
30

The Bank of Ghana (BoG) has noted in its Financial Review Report for 2019 that Total financial system assets expanded in the period under review. The assets of the financial system increased to GH₵186.11 billion at end-December, 2019 from GH₵168.42 billion at end-December, 2018.

The improvement in the asset of the financial system was on the back of expansions in the banking, insurance, and pension sectors.

In the securities sector, a ban on guaranteed investment products and resolutions targeted at sanitising the sector, led to a drop in managed funds (excluding pension funds). In the medium-to-long term however, these initiatives together with plans to recapitalise the securities sector are expected to bolster growth.

As at end of December 2019, the banking sector had the greatest share of total financial sector assets constituting approximately 76.78 percent, followed by the pensions (14.13 percent), securities (5.57 percent) and
insurance (3.51 percent) sectors. Broadly, the financial sector remained well-positioned to support economic
growth and financial stability.

Interconnectedness of the Financial System Total exposures of banks to the other financial institutions6 approximately amounted to GH₵1.5 billion as at end-December 2019. Exposures of banks to the other financial institutions were mainly in the form of loans and investment placements with the other financial institutions.

In the year under review, universal banks were largely exposed to securities firms (GH₵845.30 million), specialised deposit-taking institutions (SDIs) (GH₵652.04 million), insurance companies (GH₵25.86 million) and pension institutions (GH₵0.12 million).

Source: Laud Buisness.com|Ghana

LEAVE A REPLY

Please enter your comment!
Please enter your name here