Banking Sector Maintains Stability as NPLs Decline and Capital Buffers Hold Firm
Ghana’s banking sector remains broadly resilient as it enters the final quarter of 2025, with the latest regulatory data pointing to improving asset quality, strong capital buffers and a steady recovery in lending activity, despite signs of moderation in overall balance sheet growth.
Non-performing loans (NPLs) continued their gradual downward trend, declining to 19.5% in October from 20.4% in September. The improvement reflects a sustained strengthening in banks’ loan books throughout the year. Excluding the “loss” category, NPLs held steady at 6.8%, underscoring the fact that most credit portfolios remain sound and that the highest-risk exposures are increasingly isolated.
Capital levels also remain robust. The capital adequacy ratio (CAR) stood at 17.9% in October, slightly below the mid-year peak of 20.3% but still comfortably above regulatory requirements. The figures indicate that banks maintain ample buffers to absorb potential shocks, even as lending decisions become more cautious under tighter liquidity conditions.
Balance sheet trends over the past year reveal a sector that has expanded significantly but is now experiencing a mild consolidation. Total assets grew from GHS 367.2 billion in October 2024 to a high of GHS 428.6 billion in September 2025, before easing to GHS 423.3 billion in October. Total deposits followed a similar trajectory, rising from GHS 277.3 billion to GHS 309.8 billion over the year, before dipping to GHS 302.0 billion in October.
Lending activity, however, continues to strengthen. Total advances rose to GHS 103.1 billion in October 2025, reflecting improving credit demand and cautious but steady support to businesses and households. The combination of falling NPLs, strong capital positions and renewed credit expansion suggests that banks are navigating the current tightening cycle with discipline, balancing risk management with efforts to sustain economic activity.
Although October’s dip in total assets may point to a temporary pause in expansion, the underlying indicators — particularly asset quality and capital strength — highlight a sector that remains well-anchored. As liquidity conditions tighten further in line with anti-inflation measures, the banking industry appears positioned to manage emerging pressures while maintaining overall stability.
