The total amount of secured loans registered by banks and Specialized Deposit-Taking Institutions (SDIs) stood at almost GH¢5.9 billion compared to the GH¢13.2 billion in the same period of 2022.

This huge decline of GH¢7 billion in secured loans by financial institutions was reported in the Bank of Ghana’s collateral registry quarterly brief for the fourth quarter of 2023.

Per the data, loan growth slowed down on a year-on-year basis for 2023. This signals portfolio reallocations by banks.

According to the report, banks accounted for GH¢4.5 billion in total secured loans in quarter four of 2023, a 63% decrease from the GH¢12 billion in the same period in 2022.

In contrast, specialized deposit-taking institutions recorded 1.4 billion cedis in secured loans, a 53% rise from 2022.

Banks registered the highest share of the overall value of secured loans. It was followed by savings and loan companies, and then rural and community banks.

Microfinance companies came in next, followed by Finance Houses, both of which increased marginally with their share.

The Commerce and Finance sector was the highest recipient of secured loans with a percentage share of 43. 3 percent in Q4:2023.

Services sector followed with 20.0 percent, Manufacturing sector with 11.7 percent, Mining and Quarrying sector
with 8.0 percent share and Construction sector with 6.1 percentage share.

The lowest recipients of secured loans were Agriculture, Forestry and Fishing sector (4.8%), Transport and Haulage sector (2.3%), Electricity, Gas and Water sector (0.4%), Information & Communications (0.1%) and Cottage Industries sector (0.1%)

Performance of the Collateral Registry broadly improved in the fourth quarter of 2023 compared with the same period in 2022.

Volumes of collateral registration, discharges, and realisation of security interests showed appreciable increases, pointing to a pick-up in the patronage of the Registry’s services within the review period.

Strategically, the Registry will continue to intensify public awareness on the need to conduct searches as part of the credit appraisal process of banks, SDIs, and other types of lenders.