Ghana’s banking system has strengthened significantly and is now liquid, solvent, and profitable, according to Dr. Johnson Pandit Asiama, Governor of the Bank of Ghana (BoG).
Speaking before Parliament’s Committee on Economy and Development, Dr. Asiama said the sector is increasingly positioned to support the country’s economic recovery.
“A stronger banking system means more credit flowing into the economy, where jobs and growth are created,” he told lawmakers, emphasizing that macroeconomic stability must ultimately be reflected in the strength of the domestic financial system.
The governor outlined the sector’s progress since the start of 2025, when the banking system was still adjusting to the effects of the Domestic Debt Exchange Programme (DDEP). At that time, capital buffers were under pressure, non-performing loans were elevated, and confidence required rebuilding.
Through recapitalization efforts and close supervisory engagement, the banking system has strengthened considerably. Capital adequacy improved to 17.5 percent, comfortably above the 13 percent regulatory minimum, while asset quality also improved. The non-performing loan ratio declined from 21.8 percent to 18.9 percent, with banks now having a clear roadmap to reduce NPLs toward 10 percent by the end of 2026.
Balance sheets have expanded significantly. Total assets increased from GH₵368 billion to GH₵447 billion, while deposits grew nearly 18 percent, rising from GH₵276 billion to GH₵325 billion. Liquidity remains strong, with liquid assets covering about 96 percent of deposits. Credit activity is also recovering: gross loans rose from GH₵95 billion to GH₵111 billion, while cumulative new loan disbursements increased from GH₵80.95 billion in October 2025 to GH₵104.17 billion by December.
Private sector credit growth accelerated sharply, with nominal growth surpassing 19 percent and real growth reaching 13 percent, compared with just 2 percent the previous year. Dr. Asiama said these figures underscore the effectiveness of the policy measures taken by the BoG to restore stability to the financial system.
“These indicators show that the banking system today is liquid, solvent, and profitable, and increasingly positioned to support Ghana’s economic recovery,” he said, noting that the improvements would enable more credit to flow into the economy, supporting jobs, business activity, and long-term growth.
Why this matters
A stronger banking system directly affects households and businesses. With increased liquidity and credit availability, businesses can expand operations, invest in new projects, and create jobs. Households benefit from more accessible loans for homes, education, and small enterprises.
The decline in non-performing loans and stronger capital buffers also means the banking system is more resilient to shocks, reducing the risk of bank failures and protecting depositors. Additionally, improved confidence in the sector encourages savings and investment, reinforcing broader economic recovery.
Dr. Asiama said these outcomes reflect deliberate policy actions by the BoG to restore stability, increase credit flow, and ensure that macroeconomic improvements translate into tangible benefits for ordinary Ghanaians.
