Rural banking sector records 27% growth with GH¢6.5 billion in total assets – BoG

• The rural banking sector has recorded a 27.4% growth as at June 30, 2021

• This, according to the Bank of Ghana amounts to GH¢6.5 billion in total assets

• Branch networks for rural banks have also increased significantly

The Bank of Ghana (Bank of Ghana) has revealed that the overall profitability of the rural banking sector has remained positive as at the end of June 30, 2021.

According to Governor of the bank, Dr Ernest Addison, the sector recorded an annual growth of 27.4 percent in total assets amounting to GH¢6.5 billion.

Making the disclosure in a speech at the 40th-anniversary celebration of the Akuapem Rural Bank, the central bank governor said advances, deposits and investments in the rural banking sector also increased by 23.6, 31.2 and 50.1 percent, respectively.

"The sector’s non-performing loans ratio declined to 11.5 percent from 12.3 percent a year earlier, signalling an improvement in asset quality. It is our expectation that all rural and community banks will fully comply with the minimum capitalisation requirement of GH¢1 million by the end of 2021 and maintain the increased capital unimpaired," the governor stated.

Meanwhile, the Governor revealed that Ghana has since the 1980s till date increased the rural and community banks space from an earlier 30 to 145 institutions with branch networks out of about 851.

"The increased number of rural banks has been accompanied by increased customer reach, technology deployment, as well as improved delivery of financial services within the local communities," he concluded.