Ghana News Online
..When You Need To Be Sure!
Home
News
HeadlineEducationAgricultureHealthPress Releases
Business
ICT & ScienceSMESBankingAutoReal Estate
Politics
Entertainment
Music
SportsLife & StyleTechnologyTheKings Radio – LiveWorld News
Features & Opinions
EditorialsEditor’s Take
Photo GalleryVideos

Copyright 2023 - Ghananewsonline.com.gh is Powered by ArtCraft Media Consult. All Rights Reserved

  • facebook
  • twitter
  • google_plus
  • Email
Ghana News Online - ..When You Need To Be Sure!

T-Bill share of banks’ investment portfolio leap from 17.8% to 51% as DDEP reshapes country’s investment landscape

Equity investments, meanwhile, have remained on the fringes, with their share in the investment portfolio modestly moderating from 0.3% to 0.2% during the period under review.
T-Bill share of banks’ investment portfolio leap from 17.8% to 51% as DDEP reshapes country’s investment landscape
By Rhema on October 23, 2023

The Bank of Ghana’s September 2023 Monetary Policy Report reveals a dramatic transformation in the investment landscape of the country’s banking sector. Per the report, Treasury bills (T-bills) have surged to prominence, now constituting the largest share of banks’ investment portfolios. This seismic shift has seen the share of T-bills skyrocket from a modest 17.8% in August 2022 to a commanding 51% in August 2023.

The sharp ascent of T-bills can be attributed to a curtailment in trading activity within the medium-to-long term instruments category, driven primarily by the Domestic Debt Exchange Programme. Consequently, the once-dominant long-term securities have seen a staggering decline, falling to a mere 48.8% from their lofty perch at 81.9% during the same period last year.

Equity investments, meanwhile, have remained on the fringes, with their share in the investment portfolio modestly moderating from 0.3% to 0.2% during the period under review.

Total investments have witnessed a substantial uptick, reaching ¢97.1 billion in August 2023, representing a remarkable growth of 19.9% compared to the meager 0.8% expansion observed in August 2022. This resurgence is largely attributed to banks’ continued asset portfolio rebalancing, which now favors short-term investments, a trend initiated by the Domestic Debt Exchange Programme (DDEP) and the revision of the Cash Reserve Ratio.

The shift towards short-term investments has been nothing short of seismic, with short-term investments surging by a remarkable 242.6% in August 2023, following a sharp contraction of 38.2% in August 2022. In stark contrast, long-term investments, particularly securities, have faced a daunting contraction, plummeting by 28.6% from a buoyant growth of 16.9% during the same reference period.

Consequently, the share of investments within the broader context of total assets has seen a marginal uptick, edging up to 39.7% in August 2023 from its previous position of 39.6% in August 2022.

In summary, Ghana’s banking sector is undergoing a momentous transformation, with Treasury bills taking center stage as the dominant investment choice for banks. The surge in T-bills is a direct consequence of factors like the Domestic Debt Exchange Programme, which has reshaped the investment landscape and ushered in an era of short-term investment dominance, while the once-mighty long-term securities have receded into the background.

Source: Norvanreports
DDEPInvestment LandscapeT-Bill share of banks' investment portfolio leap from 17.8% to 51% as DDEP reshapes country's investment landscapeT-Bills
  • Banking
  • Business
  • General News
Share
Related Posts

Investigate National Cathedral Project or risk public disappointment – Dormaahene urges Mahama

Wontumi is not on hunger strike, I had supper with him 2 days ago – Lawyer clarifies

Bawumia, Minority Leader, granted access to Wontumi as tensions mount over detention

Coalition of NPP allinged Political Parties Petition Head of Diplomatic Community over percieved Threat to Ghana’s Democracy

GNASSM refutes TEAP’s baseless allegations against Godwin Amarh

Chairman Kutin Jnr To join maker on 31 May 2024; final funeral rites to be held at Assin Jakai

‘Ashanti Betrayal’: Veteran Journalist Slams NPP MPs Over Wontumi’s Legal Ordeal

  • About us
  • Advertise
  • Contact
  • Privacy Policy