Commerce, Finance sectors get highest amount of total bank credit

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March 16, 2016 12:27 PM

The three highest recipient sectors of credit, namely Commerce & Finance, Services, and Electricity, Gas & Water, accounted for 61.4 percent of credit allocation in September 2015 compared with 61.3 percent recorded in September 2014.

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The Commerce & Finance sector received the highest amount of credit from banks, accounting for 23.5 percent as at September 2015 compared with 25.2 percent in September 2014.

The share of credit allocation to other sectors including Manufacturing, Construction and Miscellaneous improved while Mining & Quarrying, Transportation, Storage & Communication, and Agriculture, Forest & Fishing declined during the review period.

Meanwhile, contrary to perception that banks prefer to lend to government more than private sector, the Bank of Ghana's Financial Stability Report has revealed that banks' loans to Government and public insititutions decreased from 5.9 percent in September 2014 to 5.3 percent in September 2015.

Credit to private enterprises however increased to 76.9 percent of gross loans in September 2015 from 75.7 percent recorded in September 2014. The share of 10 household loans in gross loans increased marginally to 15.5 percent in September 2015 from 15.3 percent in September 2014.

Credit to public enterprises accounted for 2.3 percent of gross loans and advances in September 2015, compared with 3 percent registered in September 2014

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