Ghana: Ghana's banking sector remained resilient in 2025 despite elevated non-performing loans, the Bank of Ghana has said in its Financial Stability Review.
According to Ghana News Agency, the 2025 Review indicated that the banking industry recorded strong performance, underpinned by improved profitability, higher capital adequacy, sustained liquidity, and asset growth. The report highlighted that the capital adequacy ratio stood at 17.5 percent in December 2025, well above regulatory requirements, reflecting strong solvency and banks' capacity to absorb shocks.
Return on equity was about 30.8 percent, driven by increased interest income, improved loan recoveries, and effective cost management, while total assets expanded significantly on the back of deposit mobilization and recapitalization. The report noted that non-performing loans declined to 18.9 percent in December 2025 from 21.8 percent in 2024, though they remained elevated due to legacy credit issues and recent economic challenges, including the domestic debt restructuring programme.
The report stated, "The asset quality of the banking sector has improved, but non-performing loans remain above desired levels, requiring sustained regulatory and supervisory attention." The Review mentioned that the central bank had issued directives to strengthen credit risk management, enhance underwriting standards, improve monitoring systems, and ensure timely recovery of distressed loans. Banks are required to reduce non-performing loans to 10 percent or below by the end of 2026.
The report also stated that the overall soundness of the sector improved, supported by recapitalization, stronger supervision, and enhanced corporate governance. Liquidity conditions remained stable with adequate buffers and funding driven mainly by deposits and shareholder funds. Stress tests showed the sector remained resilient to macroeconomic shocks, supported by strong capital buffers.
The Review concluded that the outlook remained positive, supported by expected economic growth, easing inflation and interest rates, and strengthened risk management frameworks. It stressed that continued reforms and effective supervision were necessary to sustain stability and long-term resilience.