A survey conducted by the Bank of Ghana (BoG) in January 2012 has indicated that credit from banks to households and enterprises looks tight.

The tightening  of  credit stance, a BoG report in February 2012 explains, “was  more  pronounced  for  small and medium enterprises on account  of  inadequate cash-flow to support repayment, weak financial  performance and  inadequate  security.”

According to the report, private sector credit increased in 2011 compared to the decline in 2010.

“By December 2011, private sector credit had reached GH¢8.6 billion from GH¢6.8 billion in 2010, representing a year-on-year growth of 26.3%,” it said.

Stress tests, the central bank conducted in February this year confirmed that the “banking system is resilient to interest and exchange rate shocks.”

However, the BoG says credit and deposit concentration risks remained.

By Ekow Quandzie/Ghanabusinessnews.com

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