Financial sector assets surge to GH₵525bn in 2024
By Praisebell Rosemond Larbi
Ghana’s financial sector closed 2024 with strong asset growth, recording a 34.6 percent rise to GHS525.59 billion from GHS390.17 billion in 2023, according to the Bank of Ghana’s 2024 Financial Stability Review.
While the increase signals improved balance sheets and a more robust system, the sector’s share of the national economy dipped slightly to 45.2 percent of GDP, down from 46.4 percent the previous year.
The banking industry remains the dominant player, accounting for 76.4 percent of all financial sector assets. Pensions followed with 16.4 percent, while securities and insurance contributed 3.8 percent and 3.4 percent respectively.
Analysts say this concentration in banking reflects both the sector’s central role in financial intermediation and the relatively slower asset expansion in other segments.
The review also highlighted a notable rise in interconnections among financial institutions. Banks’ exposure to other financial entities rose to GHS286 million, with GHS272.73 million of that linked to the securities market.
Meanwhile, other financial institutions’ exposure to banks saw a sharp increase to GHS11.56 billion in 2024, up from GHS8.14 billion a year earlier.
Within this, securities firms accounted for the largest share of exposure to banks at GHS5.9 billion, followed by insurance companies with GHS3.1 billion and pension funds at GHS2.6 billion.
Net claims data show other financial institutions held GHS11.27 billion more with banks at the close of 2024, compared to GHS7.94 billion the previous year, a 41.9 percent increase.
The Bank of Ghana noted that while these growing linkages can enhance liquidity flow and investment opportunities, they also pose potential systemic risks.
“Higher interconnectedness means shocks in one part of the financial system could transmit more quickly to others, making risk monitoring and regulatory oversight even more critical,” the report cautioned.
Economists believe the strong asset growth could support the government’s economic expansion agenda, provided lending conditions improve to channel more credit towards the private sector. However, they warn that the sector’s heavy reliance on banks underscores the need for a more diversified financial ecosystem that leverages pensions, insurance and capital markets for long-term financing.
