Finance Minister, Ken Ofori-Atta, has unveiled that the banking sector has defied expectations by achieving an outstanding performance during the first half of 2023.
He made the remarks while delivering the 2023 Mid-Year Budget Review in Parliament on July 31, 2023.
“Mr. Speaker, the banking sector posted unexpected, relatively strong performance during the first half of the year, despite the lingering effects of the DDEP,” he said.
He noted that the Banks have reported increased deposits and investments, higher profitability and a return on equity of over 35 percent.
“The impact of the DDEP, such as the increase in non-performing loans (NPLs), was partly moderated by the timely introduction of temporary regulatory reliefs. In the outlook, the operationalisation of the US$750 million Ghana Financial Stability Fund and the planned recapitalisation of banks would ensure stability as well as strengthen financial intermediation to support the private sector,” he added.
The Mid-Year Budget Review is in accordance with Section 28 of the Public Financial Management Act, 2016 (Act 921). It serves as a crucial stepping stone, enabling the government to embark on a transformative economic agenda for the latter half of the year.
Earlier, the Finance Ministry explained that this year’s Mid-Year Budget Review will lay out essential programmes and policies aimed at restoring macroeconomic stability, while propelling economic growth.