CJTF: GCB overtakes Stanbic and controls 16.74% of the market

GCB Bank has now overtaken Stanbic Bank with significant investments in the Ghana Stock Exchange (GFIM) fixed income market in the first half of this year.

The country’s second largest bank held 16.74% of the debt market, having acquired 3.7 billion yen worth of debt instruments.

The native bank traded more volumes of debt instruments than any of the 23 banks.

Stanbic Bank reduced its holdings of Government of Ghana securities to 13.41% from around 20% at the start of the year. His investments in government bonds amounted to ¢3.5 billion.

Fidelity (12.06%), Access (11.16%) and Absa (10.53%) also maintained large investments in public debt instruments.

Together they controlled 34.1% of the Ghanaian fixed income market.

From the trading results, it can be said that some banks have reduced their holdings in the largely risk-free instruments, while others have increased their exposure.

The Agricultural Development Bank, National Investment Bank and Omni BSIC, which in the past had no investments in the debt market, have now invested part of their deposits in the fixed income market . Their percentage shares were 0.01%, 0.45% and 0.29% respectively.

Bank investments favor long-term debt instruments – BoG

According to the Bank of Ghana’s May 2022 Monetary Policy Report, the investment portfolio of banks at the end of April 2022 remained in favor of long-term debt instruments, a response to higher interest rates on long-term instruments relative to rates on silver. market instruments.

The share of securities increased to 78.4% in April 2022, from 71.6% in April 2021.

However, the share of short-term bills in total investments fell to 21.3%, compared to 28.1% during the same comparative period.

The share of bonds may increase, however, as banks look to the shorter end of the market to take advantage of rising yields in this segment of the market following recent increases in the monetary policy rate (MPR).

The share of investments in equities remains insignificant at 0.3%

James V. Hayes