Banks liquidity position remains strong – BoG

0
96

The Bank of Ghana (BoG) has said the banking industry’s liquidity position remains strong despite the marginal declines experienced during the review period.

The ratio of core liquid assets (mainly cash and due from banks) to total deposits moderated from 32.5 percent in August 2020 to 27.7 percent in August 2021 while the ratio of core liquid assets to total assets declined from 20.9 percent to 18.6 percent over the same comparative period.

Similarly, the broad liquid assets to total deposits ratio declined from 100.8 percent to 99.5
percent while the broad liquid assets to total assets ratio dipped from 64.8 percent to 66.7 percent over the review period.

The decline in the broad measures partly reflects the moderation in investment
growth this year compared to the same period last year.

The industry solvency position remained robust, with a CAR of 20.7 percent as at end August 2021, well above the regulatory minimum of 11.5 percent.

The higher capital adequacy ratio enhances the ability of banks to deepen intermediation and shows that banks have adequate buffers to absorb any potential losses from such increased lending during the current uncertain operating environment.

LEAVE A REPLY

Please enter your comment!
Please enter your name here