Total assets of the banking industry amounted to GH¢27.2 billion in December 2012 compared to GH¢22.1 billion in December 2011.

The growth in banks’ assets was supported by a deposit growth of 22.5 percent during the period.

The Bank of Ghana which made this known said Industry Capital Adequacy Ratio (CAR) increased from June 2012, as banks worked towards meeting the minimum capital requirement.

By end 2012, the industry CAR was 18.6 percent, up from 17.4 percent in 2011. Similarly, there was some improvement in the non-performing loans (NPL) ratio, which moved down to 13.2 percent in 2012 from 14.2 percent in 2011.

The pace of money market rates observed during the first half year slowed down towards the last quarter of 2012 supported by improved inflation and exchange rate expectations.

Cumulatively, the policy rate was raised by 250 basis points to 15 percent in June and maintained for the rest of the year.

Credit to the private sector by deposit money banks (DMBs) grew by 34.1 percent in December 2012, compared to 26.3 percent in 2011. In real terms, private sector credit growth was 23.2 percent in December 2012, relative to 16.3 percent in 2011.

BoG’s latest credit conditions survey showed further easing of credit conditions for large enterprises and consumer credit.

However, credit for mortgages and small and medium term enterprises was tightened in the period. The banking sector continued to be profitable and solvent.

All the financial sector soundness indicators measured by earnings, liquidity, and capital adequacy recorded some growth.

By the end of 2012, all banks had met the GH¢60 million revised minimum capital requirement.

On money market instruments, the benchmark 91-day Treasury bill rate, which rose from 10.7 percent in December 2011 to 22.4 percent in June 2012, increased marginally in the second half year to 23.1 percent.

The 182-day bill increased from 11.1 percent in December 2011 to 22.0 percent in June 2012, and increased to 22.7 percent in December 2012.

The 1-year fixed note went up from 11.3 percent in December 2011 to 22 percent in June and to 22.9 percent in December 2012.

The 2-year fixed note rose from 12.4 percent in December 2011 to 23 percent in June and remained unchanged for the rest of the year.

The longer-end of the market witnessed significant declines in yields since June 2012. From 14 percent in December 2011, the 3-year bond rates rose to 24 percent by mid-year before declining to 16.7 percent in January 2013.

Similarly, the 5-year bond rates moved from 14.3 percent in December 2011 to 26 percent in June and declined to 23 percent in December 2012.

The average 3-month deposit rates went up from 7.8 percent in December 2011 to 12.5 percent in December 2012.

Average lending rates however declined marginally from 25.9 percent to 25.7 percent in the same period, narrowing the spread between lending and savings deposit rates to 13.2 percent.