Foreign-owned banks maintained dominance in secured loan issuance during the fourth quarter of 2024, but their market share declined significantly, according to the Bank of Ghana’s latest Quarterly Collateral Registry Brief.
The report shows a drop in foreign banks’ share from 74.6% in Q4 2023 to 51.5% in the same period of 2024, while domestic banks increased their portion from 25.4% to 48.5%.
This shift underscores the growing role of local banks in secured lending, even as foreign banks remain the primary players.
The average lending rate for secured loans stood at 28.6%, slightly down from 28.8% in 2023, keeping banks 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.
