Banks and Specialized Deposit-Taking Institutions (SDI) collectively issued and registered secured loans with a total estimated value of GHS5.9 billion in the second quarter of 2023, according to the Bank of Ghana.
This figure reflects a notable growth of 15.5% compared to the previous year.
According to the second quarter Collateral Registry Report released by the Bank of Ghana (BoG), banks were responsible for ¢4.9 billion of these secured loans during the same period in 2023.
This represents a substantial increase of 14.8% compared to the second quarter of 2022. The banks’ share of the total secured loans constituted 83.7% of the overall figure.
In contrast, Specialized Deposit-Taking Institutions recorded a total of GHS971.1 million in secured loans during the second quarter of 2023. This share accounted for 16.5% of the total secured loans and marked a significant rise of 19.1% from the ¢815.0 million recorded during the equivalent period in 2022.
Quarter 1, 2023
The value of secured loans for which collateral was registered by banks and SDIs was GHS5.26 billion in Q1:2023, relative to GHS 6.5 billion in Q1:2022, indicating a year-on-year decline of 19.23 percent.
Banks accounted for GHS 4.3 billion of total secured loans, representing 25.1 percent decrease from GHS 5.8 billion recorded in Q1:2022 and a share of 82.4 percent out of the total secured loans . On the other hand, the SDIs recorded a total amount of GHS 924.7 million secured loans representing a share of 17.6 percent and an increase of 29.8 percent from the GHS 712.6 million recorded for the same period in 2022.
Quarter 2, 2023
In the second quarter of the year, banks continued to hold the lion’s share of secured loans, accounting for a substantial 83.7% of the total.
Savings and Loans companies, on the other hand, saw their portion of secured loans increase to 9.8% compared to the same quarter in 2022. In contrast, Finance Houses experienced a decline, with their share dropping to a mere 0.3% from 0.8% in the second quarter of 2022. Microfinance Companies also saw a slight uptick, claiming 1.1% of the secured loans, up from 0.9% during the corresponding period in the previous year.
During the second quarter of 2023, a total of 50,695 collateral registrations were recorded, marking a growth of 15.5%. This is in comparison to the 43,861 registrations seen in the same quarter of 2022, representing a 15.6% year-on-year increase.
Breaking down these registrations across various categories of lenders, Savings and Loans Companies dominated the landscape with 39,796 registrations in the second quarter of 2023, indicating a significant surge of 23.8% from the 32,147 registrations recorded during the second quarter of 2022.