The Bank of Ghana (BoG) has said Ghana’s banking sector is showing clear signs of recovery after the pressures created by the Domestic Debt Exchange Programme, with improvements recorded in capital levels, asset growth and lending activity.

According to the central bank, key indicators point to a stronger and more resilient banking industry capable of supporting the country’s economic recovery.

Capital adequacy in the sector improved to 17.5 percent, comfortably above the regulatory minimum requirement of 13 percent. Asset quality has also improved, with the non-performing loan (NPL) ratio declining from 21.8 percent to 18.9 percent.

The overall size of the banking sector has expanded as confidence returns. Total assets increased from GH₵368 billion to GH₵447 billion, while deposits grew by nearly 18 percent to reach GH₵325 billion.

Credit activity is also recovering gradually. Gross loans rose from GH₵95 billion to GH₵111 billion, while new loan disbursements increased significantly toward the end of 2025.

The Governor of the central bank, Dr Johnson Asiama briefing the Parliamentary Committee on Economy and Development on issues of monetary policy, financial stability, and the broader health of the Ghanaian economy said the trends indicate that the financial system remains liquid, solvent and increasingly capable of supporting economic growth by providing credit to businesses and households.

Financial implications for the central bank

While the stabilisation measures implemented to restore macroeconomic stability have yielded positive outcomes for the economy, Dr Asiama acknowledged that the central bank has had financial implications for its own balance sheet.

These include reduced income from government securities following the restructuring of public debt, increased interest costs linked to liquidity management operations, and accounting valuation effects resulting from exchange rate movements.

The cost of open market operations — used by the central bank to absorb excess liquidity from the banking system — rose significantly from about GH₵8.6 billion in 2024 to roughly GH₵17 billion by the end of 2025.

Despite these financial pressures, the central bank emphasized that the situation does not affect its ability to carry out monetary policy or fulfill its mandate of maintaining price and financial stability.

Outlook

Looking ahead, the Bank of Ghana expects its financial position to strengthen gradually as economic conditions stabilise.

Improved investment income from reserve assets, declining liquidity management costs, and stronger returns from reserve portfolio management are expected to support the Bank’s financial recovery over time.

Governor Johnson Asiama said the broader economic outlook remains encouraging, with lower inflation, stronger external buffers and improving financial sector conditions laying the foundation for sustained economic growth.

However, he cautioned that risks in the global economy remain, including shifts in international financial conditions and volatility in commodity prices.

The central bank, he said, will continue to pursue a “prudent, disciplined and data-driven approach” to monetary policy to safeguard macroeconomic stability.