Foreign banks in Ghana maintained their dominance in the secured loan market in the fourth quarter of 2024, but their grip loosened significantly, according to the latest Quarterly Collateral Registry Brief from the Bank of Ghana.
The report highlights a sharp decline in foreign banks’ market share, which tumbled from 74.6% in Q4 2023 to 51.5% in the same period of 2024. In contrast, domestic banks made notable gains, boosting their share from 25.4% to 48.5%, signalling a shift in Ghana’s financial landscape.
Despite this trend, foreign banks remain the leading lenders.
The average lending rate for secured loans stood at 28.6%, a slight dip from 28.8% the previous year, keeping banks among the most competitive lending institutions.
Lending rates from other financial institutions were as follows:
- Finance and leasing companies: 33.1% (down from 38.8%)
- Rural and community banks: 33.5% (down from 34.4%)
- Savings and loans firms: 43% (down from 44.1%)
- Microfinance institutions: 46.5% (down from 51.1%)
- Microcredit companies: 49.5% (up from 47.7%)
- Finance houses: 59.4% (down from 60.3%)
