In the fourth quarter of 2023, the total value of secured loans granted and registered by banks and Specialised Deposit-Taking Institutions (SDIs) amounted to GH¢5.9 billion. This represents a significant decrease compared to GH¢13.2 billion in the fourth quarter of 2022, marking a decline of 54.9% year-on-year.
According to the fourth Quarter Collateral Registry Report, banks contributed GH¢4.5 billion to the total secured loans in the fourth quarter of 2023, indicating a decline of 63.0% from GH¢12.3 billion recorded in the same period of 2022. This indicates a slowdown in credit growth for the year, reflecting banks' portfolio reallocation.
Conversely, SDIs recorded a total of GH¢1.4 billion secured loans in the fourth quarter of 2023, marking an increase of 53.0% from GH¢918.7 million recorded in the same period of 2022.
In terms of the distribution of secured loans, banks held the largest share, accounting for 76.3% of the total value in the fourth quarter of 2023, compared to 93.0% in the fourth quarter of 2022.
The share of secured loans by Savings and Loans Companies increased to 13.3% in the fourth quarter of 2023 from 4.2% in the same period of 2022. Similarly, Rural and Community Banks accounted for a percentage share of 6.9% in the fourth quarter of 2023, up from 1.9% in 2022.
The share of secured loans by Microfinance Companies also saw an increase to 1.7% in the fourth quarter of 2023 from 0.3% in the same period of 2022. Additionally, Finance Houses saw a marginal increase in their share of secured loans from 0.1% in the fourth quarter of 2022 to 0.5% in the fourth quarter of 2023.
Source: cometodaddy.xyz
