By Jibril Abdul Mumuni
Accra, May 21, GNA – Ghana’s banking sector remained resilient in 2025 despite elevated non-performing loans, the Bank of Ghana has said in its Financial Stability Review.
The 2025 Review indicated that the banking industry recorded strong performance, underpinned by improved profitability, higher capital adequacy, sustained liquidity and asset growth.
It stated that the capital adequacy ratio stood at 17.5 per cent in December 2025, well above regulatory requirements, reflecting strong solvency and banks’ capacity to absorb shocks.
Return on equity was about 30.8 per cent, driven by increased interest income, improved loan recoveries and effective cost management, while total assets expanded significantly on the back of deposit mobilisation and recapitalisation.
The report said that non-performing loans declined to 18.9 per cent in December 2025 from 21.8 per cent in 2024, though they remained elevated due to legacy credit issues and recent economic challenges, including the domestic debt restructuring programme.
“The asset quality of the banking sector has improved, but non-performing loans remain above desired levels, requiring sustained regulatory and supervisory attention,” it said.
The Review said the central bank had issued directives to strengthen credit risk management, enhance underwriting standards, improve monitoring systems and ensure timely recovery of distressed loans, while also requiring banks to reduce non-performing loans to 10 per cent or below by end-2026.
It said that the overall soundness of the sector improved, supported by recapitalisation, stronger supervision and enhanced corporate governance, while liquidity conditions remained stable with adequate buffers and funding driven mainly by deposits and shareholder funds.
Stress tests, it said, showed the sector remained resilient to macroeconomic shocks, supported by strong capital buffers.
The Review said the outlook remained positive, supported by expected economic growth, easing inflation and interest rates, and strengthened risk management frameworks, stressing that continued reforms and effective supervision were necessary to sustain stability and long-term resilience.
GNA
Edited by Kenneth Sackey