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…despite channeling huge resources into gov’t bills
Although data show banks have developed a high taste for lending to government, industry players say the sector is ready to support businesses get back on their feet despite the risk in doing so.
According to the banking sector report (March 2021) published by the Bank of Ghana, the asset structure of the industry shows investment in government instruments for the first two months of the year made up 43.1 percent, while net advances – loans given out – formed just 28 percent. What this simply means is that banks are pushing more money into buying long-term Treasury bills rather than giving such monies as loans to businesses due to risk associated with the latter.