Bank of Ghana ends month of May with Ghs 145 billion liabilities
The Bank of Ghana (BoG) at the end of May this year posted total liabilities of Ghs 145 billion.
Compared to the Bank’s total liabilities of Ghs 142 billion at end-April 2021, the recorded total liabilities of Ghs 145 billion at end-May 2021 represents a month-on-month increment of Ghs 3 billion in the Bank’s liabilities.
A perusal of the Bank’s May 2021 Statistical Bulletin indicates that the Bank’s liabilities on a year-on-year basis increased by some Ghs 36.5 billion – BoG’s liabilities at end-May 2020 stood at Ghs 109.1 billion.
Liabilities in the banking space, is often viewed as an ‘asset’ and not debt due to the fact that a major component of a bank’s liabilities are deposits made by customers – banks in BoG’s case – which the bank can in turn use for credit creation by lending the monies out to other customers or banks as loans.
Of the liabilities posted for end-May 2021, domestic liabilities accounted for Ghs 36.7 billion with foreign liabilities also accounting for Ghs 32.7 billion.
“Other liabilities,” the Bank noted, accounted for Ghs 53.4 billion of its total liabilities.
Deposits from government – Ghs 25.06 billion – accounted for the majority of the regulator’s domestic liabilities, followed closely by some Ghs 11.3 billion deposits also made by the various commercial banks in the country.
Deposits from public institutions, the BoG further noted formed only Ghs 303 million of its liabilities.
The Central Bank, with regards to its foreign liabilities, failed to give a breakdown of the items that constituted its foreign liabilities, but one can always expect funds realised from issued Eurobonds and other foreign loans taken by government to be a major component of the bank’s foreign liabilities.
The Banks’ foreign liabilities at end-May 2021 stood at Ghs 32.7 billion.