Foreign-owned banks maintained their dominance in secured loan issuance during the fourth quarter of 2024, though their market share saw a significant decline, according to the Bank of Ghana’s latest Quarterly Collateral Registry Brief.
The report reveals a drop in foreign banks’ share from 74.6% in Q4 2023 to 51.5% in Q4 2024, while domestic banks increased their share from 25.4% to 48.5%.
This shift highlights the growing influence of local banks in the secured lending market, despite foreign banks still being the dominant players.
The average lending rate for secured loans was 28.6%, slightly down from 28.8% in 2023, maintaining banks’ position as the most competitive lenders.
Other financial institutions recorded the following lending rates:
- 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%)
While foreign banks continue to lead the secured loan market, the increasing participation of domestic banks signals a gradual shift in Ghana’s financial sector.
