Accra: The Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, has noted that Ghana's banking sector has recorded significant improvements, with stronger bank balance sheets, improved solvency, and a sharp increase in private sector credit. Speaking to CEOs of banks during a meeting in Accra, Asiama highlighted the remarkable growth in the sector, attributing the positive changes to increased banking sector assets, which rose by 30.7 percent in June 2026, largely due to growth in deposits and shareholders' funds.
According to Ghana Web, Dr Asiama emphasized that banks' solvency has seen a marked improvement, with the Capital Adequacy Ratio climbing to 20.4 percent in June 2026 from 10.6 percent the previous year. He also pointed out that asset quality had strengthened, as evidenced by the decline in the Non-Performing Loan ratio from 23.1 percent to 16.1 percent within the same timeframe. These improvements are the result of collective efforts by the institutions present at the meeting, he stated.
The Governor further noted that financial conditions have eased, with interest rates moderating across various segments of the money market. This easing is contributing to stronger credit flows to the private sector, with private sector credit growing by 41.2 percent in June 2026, compared to 8.6 percent a year earlier. Real private sector credit growth stood at 34.1 percent, which Dr Asiama described as a significant development.
On the fiscal front, Dr Asiama mentioned that discipline remains crucial for maintaining macroeconomic stability. The fiscal performance in the first quarter of 2026 showed strong expenditure restraint, despite revenue shortfalls, leading to better-than-targeted cash balances. He stressed that sustaining these gains will require ongoing commitment to fiscal discipline, including expenditure restraint, revenue mobilization, prudent debt management, and reducing fiscal risks to the macroeconomic outlook.
The Governor's remarks come amid the government's intent to make Ghana's current IMF programme its last. Finance Minister Dr Cassiel Ato Forson emphasized the government's focus on restoring fiscal discipline and building a self-sustaining economy, declaring that the seventeenth IMF Bailout Programme should be Ghana's final one.