Ghana Industry Research: Banking

Image placeholder
Ghana’s 5% Financial Sector clean-up levy set to moderate bank profitability
  • Ghana Industry Research: Banking
  • Year : Apr 2021
Access Now
Summary

The Ghanaian financial sector entered the coronavirus crisis with a relatively assured balance sheet, strengthened by the 2017-2018 financial sector clean-up initiatives led by the Government of Ghana (GoG) and the Bank of Ghana (BoG) which addressed energy sector asset quality issues, raised minimum capital requirements, and resulted in consolidations. The 2017 financial clean-up resulted in the collapsing of about 9 banks, 23 Savings and Loans companies, 386 Microfinance companies, and 53 fund management institutions in the country.

Additional Information

The banking sector is considered to be adequately capitalized, with capital adequacy ratio (CAR) averaging 19.8% at end-2020, comfortably above the minimum regulatory requirement of 11.5%, which was reduced from 13% at the onset of the pandemic. We expect profitability to remain sound, albeit constrained by the introduction of the levy.

Related Publication

Ghana’s 5% Financial Sector clean-up levy set to moderate bank profitability

The Ghanaian financial sector entered the coronavirus crisis with a relatively assured balance sheet, strengthened by the 2017-2018 financial secto...

Fidelity Bank Ghana Limited

The analysis on Accra based- Fidelity Bank Ghana Limited (“FBL Ghana”, “the bank”) reflects the strengths and weaknesses of...

Three months in, the challenges are increasing but indications suggest that larger corporates may weather the storm.

  • GCR expects performance across almost all corporate sectors to remain weak for the remainder of 2020 due to a collapse of consumer confidence....
Available Purchase Options: