Ghana: Banks Struggle to Mobilize Savings, as MFIs Take Deep Bite
Thursday, December 19, 2013
Ghana, December, 17 2013 – The reserves of commercial banks in the country have been on consistent decline since the first quarter of the year following a sharp increase in the withdrawal of deposits and saving by their customers.
The development which was first noticed by the Bank of Ghana (BoG) in March, this year, has affected the deposit portfolios and loan books of the various banks, partly resulting in the general squeeze in credit supply to the private sector in recent times.
“This thing started this year, somewhere around March, when we noticed that deposits have not been growing as it was in the past,” the Deputy Director of the Financial Stability Department at BoG, Dr Settor Amediku, told the GRAPHIC BUSINESS on December 11.
“What we realised was that most people were withdrawing their funds from the commercial banks into microfinance institutions (MFls),” he added.