Banks increase willingness to lend

quist

March 16, 2016 11:21 AM

This means that banks have become more willing to lend to businesses in October 2015 as compared to June 2015.

___4810110___https:______static.pulse.com.gh___webservice___escenic___binary___4810110___2016___3___16___12___Banking+REPORT

The Bank of Ghanas latest Financial Stability Report has revealed that banks have relaxed their stance on lending to enterprises and househlds.

The Bank of Ghana attributed this to more confidence in the economic conditions prevailing in the business climate, making banks more confident in lending to businesses.

Banks were more willing to issue out both short- term and long- term loans to small and large businesses due to stability in exchange rates, inflationa dn ongoing fiscal consolidation.

Consequently, revenue from loans have been identified as the highest source revenue for banks in 2015.

Cash from loans constituted 51.5 percent of total income in December 2015 compared with 45.5 percent in December 2014, with the second highest being from fees and commissions.

29.3 percent of income from banks for 2015 was from investments including treasury bills, shares and other equities. While the rest of their income making up of about 11.6 percent came from fees and commissions.

According to the report, investment income share of 29.3 percent of total income in December 2015 was marginally above the 29.2 percent recorded in December 2014.

The share of income from fees and commission however declined to 11.6 percent in December 2015 from 12.8 percent in December 2014. While banks’ investment in securities as a share of total investment decreased to 18.0 percent in December 2015 from 26.4 percent in December 2014. Banks investment in Tbills up by 12%.

Investment in treasury bills as a share of total investment however increased to 79.1 percent in December 2015 from 70.2 percent in December 2014.

Banks’ investments in shares and other equities as a share of total investment also declined to 2.9 percent as at December 2015 from 3.4 percent in the same period the previous year.

Enhance Your Pulse News Experience!

Get rewards worth up to $20 when selected to participate in our exclusive focus group. Your input will help us to make informed decisions that align with your needs and preferences.

I've got feedback!

quist