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Ghanaian Banks Show Resilience in the Face of Domestic Debt Exchange.

Updated: Aug 17, 2023

The Ghanaian banking sector faced a number of challenges in 2022, including a domestic debt exchange program that led to huge impairment losses for most banks. However, the sector showed resilience, with total assets increasing by an average of 18% from the previous year.


The domestic debt exchange program required holders of government securities to exchange their bonds for new bonds with longer maturities and lower interest rates. This led to significant losses for banks, which had to write down the value of their holdings of government securities.



A chart showing total assets of Ghanaian Banks
Ghanaian Banks

Despite these challenges, the Ghanaian banking sector managed to grow its total assets by an average of 18% in 2022. This was largely driven by inflation, which pushed up the value of assets such as loans and deposits. However, it also suggests that banks were able to maintain lending activity and attract new deposits, even in the face of the domestic debt exchange program.


The resilience of the Ghanaian banking sector in 2022 is a positive sign for the Ghanaian economy. It shows that banks are still able to lend money to businesses and individuals, which can help to boost economic growth. However, the sector will need to continue to monitor the impact of the domestic debt exchange program and take steps to mitigate any further losses.

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Joel Attey
Joel Attey
Aug 13, 2023

Very insightful and beautiful infographics on the growth posted by banks in Ghana in 2022. Overall growth is stated as 18% and largely attributed to inflation and new loans sold at relatively higher interest rates (cost) to businesses and individuals.


In my mind, I have a few lingering questions I would have loved the article to address to make it more complete:


  1. What is the quantum of impairment losses incurred by the banks as a result of the Domestic Debt Exchange Programme (DDEP) ?.

  2. By how much has inflation contributed to the 18% growth?

  3. What is the movement in the average lending rate (borrowing cost) pre and post DDEP?

  4. Since the growth is inflationary, what is the real growth at…


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