Total value of secured loans granted and registered by banks and SDIs in Q4 2023 according to the Bank of Ghana in its Q4 2023 Collateral Registry report, was GHS 5.9 billion, relative to GHS 13.2 billion in Q4 2022, indicating a decrease of 54.9 percent on year-on-year terms.
Banks accounted for GHS4.5 billion of total secured loans in Q4 2023, indicating a decline by 63.0 percent from the GHS 12.3 billion recorded in Q4 2022, indicating a general slowdown in credit growth in 2023, reflecting portfolio reallocation by banks.
On the other hand, the SDIs recorded a total of GHS1.4 billion secured loans in Q4 2023, an increase of 53.0 percent from the GHS 918.7 million recorded for the same period in 2022.
With regards to the distribution of the secured loans, banks registered the largest share of the total value of secured loans in Q4 2023, with 76.3 percent, relative to the share of 93.0 percent in Q4 2022.
The share of secured loans by S&Ls increased to 13.3 percent in Q4 2023 from 4.2 percent recorded in Q4 2022.
This was followed by the RCBs with a percentage share of 6.9 percent from 1.9 percent in Q4 2022. The share of secured loans by Microfinance Companies also increased to 1.7 percent in Q4 2023 from 0.3 percent in Q4 2022.
Similarly, the share of the total value of secured loans by Finance Houses increased marginally from 0.1 percent in Q4 2022 to 0.5 percent in Q4 2023.
Meanwhile, the total number of collateral registrations recorded for Q4 2023 was 61,674 compared to 50,333 registrations in the same quarter of 2022, representing 22.5 percent year-on-year growth.
In comparison with Q3 2023, collateral registrations increased by 9.5 percent. A breakdown of the registrations across the various categories of lenders showed that Savings and Loans Companies (S&Ls) dominated with 50,007 registrations in Q4 2023, indicating an increase of 25.6 percent from 39,801 registrations recorded in Q4 2022.
Registration of collateral by Rural and Community Banks (RCBs) increased by 14.5 percent from 6,410 registrations in Q4 2022 to 7,340 in Q4 2023.
Conversely, registrations by Banks declined by 35.7 percent from 2,392 in Q4 2022 to 1,538 in Q4 2023.
Across the institutions, Leasing Companies recorded the lowest number of 6 registrations in Q4 2023 compared with 8 registrations in Q4 2022.
Source:norvanreports