The total value of secured loans granted by banks and Specialised Deposit-Taking Institutions (SDIs) in the country reached GH¢5.6 billion in the third quarter of 2024, Bank of Ghana’s Q3 Collateral Registry Brief has revealed.
This reflected a 2.8% year-on-year increase from GH¢5.5 billion recorded in the same period in 2023.
Banks accounted for GH¢3.5 billion of the secured loans, marking an 18.7% decline compared to GH¢4.3 billion in Q3 2023. Conversely, SDI saw a significant rise, with their share growing by 75%, reaching GH¢2.1 billion from GH¢1.2 billion during the same period last year.
Savings and Loans Companies captured 23.4% of the total secured loans in Q3 2024, up from 12.7% in Q3 2023, reflecting their growing prominence in providing credit.
Rural Community Banks (RCBs) also increased their share, reaching 10.2%, up from 5.3%. Microfinance Institutions saw a modest rise to 2.2%, while Finance Houses experienced a marginal decline from 0.5% to 0.3%.
The growth in secured loans indicates increased reliance on formal credit systems, particularly through SDIs, which have played a crucial role in extending financial inclusion to underserved regions. However, the decline in bank contributions signals potential challenges in traditional lending avenues, possibly due to tightened credit policies or market shifts.
The data highlights evolving dynamics within Ghana’s financial sector, emphasizing the need for innovative lending strategies to sustain credit accessibility across all economic segments.
