The Bank of Ghana's Monetary Policy Committee (MPC) has released a report on an overview of developments in Ghana's banking sector for the period between January to March 2021.

According to a statement issued by the central bank, Ghana's banking sector performance during the first two months of 2021 remained broadly liquid, profitable, well-capitalized, and resilient.

"The strong policy support and regulatory reliefs implemented to moderate the effects of the COVID-19 pandemic, continued to impact positively on the industry’s performance and in turn, its support to the real sector. The slowdown in credit growth however reflects the lingering pandemic-induced low credit demand and supply conditions and elevated credit risk in the sector," the statement read.

It continued, "Financial soundness indicators were broadly positive, underpinned by healthy solvency, liquidity, and profitability indicators. Efficiency indicators also remained strong due to the cost control measures on the bottom line which was adopted by banks to contain the impact of the pandemic. Asset quality risk, however, remains elevated due to loan repayment challenges which necessitated loan restructuring reliefs by banks."

"The latest credit conditions survey shows that credit growth is expected to pick up on the back of anticipated increases in credit demand and continuous ease in credit stance in the next two months. Looking ahead, the banking sector remains well-positioned to continue with its core business of financial intermediation to support the on-going recovery process. Banks are projected to sustain the strong performance under mild to moderate stress conditions. Continuous monitoring and heightened supervision are required to address potential vulnerabilities in the sector, as the pandemic lingers," the central bank projected.

Read the full report below: