Ghana’s Financial Sector Assets Surge to GH₵525bn in 2024 Despite Lower GDP Share

Ghana’s financial sector recorded substantial growth in 2024, with total assets climbing by 34.6% to GH₵525.59 billion, according to the 2024 Financial Stability Review. This marks a significant jump from the GH₵390.17 billion recorded in 2023, underscoring the sector’s resilience and expansion. Despite the impressive asset growth, the sector’s share of the economy dipped slightly, contributing 45.2% of GDP compared to 46.4% in the previous year.

Banks continued to dominate Ghana’s financial landscape, accounting for 76.4% of all sector assets. Pensions followed with 16.4%, while securities and insurance contributed 3.8% and 3.4% respectively. This asset distribution highlights the central role of banks in the country’s financial stability, while also showing the steady but smaller presence of other sub-sectors.

The report also pointed to increasing interconnections within the financial system. Banks’ exposure to other financial institutions reached GH₵286 million, with GH₵272.73 million of that tied to the securities market. This reflects a growing linkage between the banking sector and the investment landscape.

Meanwhile, other financial institutions’ exposure to banks surged to GH₵11.56 billion in 2024, up from GH₵8.14 billion a year earlier. Securities firms led with GH₵5.9 billion, followed by insurance companies at GH₵3.1 billion, and pensions at GH₵2.6 billion. These figures indicate deeper integration across the sector, potentially raising both opportunities and systemic risk considerations.

Net claims also grew significantly, with other financial institutions holding GH₵11.27 billion more with banks at the end of 2024, up from GH₵7.94 billion in 2023. This trend reflects increased liquidity flows and stronger inter-sectoral relationships, positioning Ghana’s financial system for both greater stability and more complex interdependencies going forward.

Source: Citi newsroom