Bank investments surged by 19.2% to reach GH¢107.2 billion in June 2024, compared to an 11.0% growth in June 2023, according to the July 2024 Monetary Policy Report.
This performance was driven by substantial growth in both short-term and long-term instruments.
Specifically, short-term bills grew by 7.3%, a significant drop from the 149.6% growth seen in June 2023.
Meanwhile, long-term investments (securities) rose by 28.6% in June 2024, reversing a 23.2% contraction in June 2023.
This mixed growth in bills and securities led to a reduced share of investments in total assets, which declined to 33.2% in June 2024 from 37.1% in June 2023.
Deposits remained the primary funding source for the banking sector, representing 76.1% of total assets in June 2024, down slightly from 77.4% in June 2023.
Deposits grew by 31.1% to GH¢245.9 billion in June 2024, compared to a 42.8% increase in June 2023. The foreign currency component of deposits increased by 29.8% to GH¢81.2 billion in June 2024, down from a 62.5% growth in June 2023.
This trend suggests that currency depreciation may have influenced the overall growth in total deposits. Borrowings also rebounded, increasing by 44.4% to GH¢23.2 billion in June 2024, following a 39.1% contraction in June 2023.
Source: Adomonline
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