Ghana’s banks showed strengthened capital positions throughout 2025, as the sector’s reported capital adequacy ratios (CAR) converged with ratios calculated without temporary regulatory reliefs by December, reflecting a return to full prudential standards.
Data from Bank of Ghana reporting shows that the CAR for the banking sector stood at 17.5% in December 2025, the same level whether temporary relief measures were included or excluded. A year earlier, CAR including reliefs was 14.0%, while the equivalent ratio without reliefs was 11.3%.
The convergence comes after the Bank of Ghana phased out temporary regulatory reliefs introduced in 2023 following the Domestic Debt Exchange Programme (DDEP).
At that time, the central bank had reduced the Capital Conservation Buffer from 3% to zero, lowering the effective minimum CAR from 13% to 10% to help banks absorb losses from DDEP-related bond adjustments.
According to the central bank, 21 of 23 licensed commercial banks met the fully loaded CAR requirement by the end of December 2025, with the remaining two banks given until March 31, 2026 to reach full compliance.
Throughout 2025, CARs climbed steadily, peaking at 20.3% in May under the standard measure before moderating in the second half of the year.
The CAR without reliefs followed a similar trend, rising from 11.3% in December 2024 to 17.5% by December 2025, reflecting the sector’s underlying capital strength.
The return to full prudential requirements marks a significant step toward financial sector stability in Ghana, as banks operate without reliance on temporary forbearance measures introduced during the DDEP period.
Strong capital buffers are expected to allow banks to absorb potential shocks, sustain lending, and support economic growth, underscoring the sector’s resilience as regulatory reliefs are fully phased out.
