Banking Sector Records Strong Asset Growth, But Credit Risks Persist – BoG
Governor of the Bank of Ghana, Dr. Johnson Asiama, has reported significant improvements in the country’s banking sector, citing strong asset growth and enhanced financial stability indicators. However, he cautioned that credit risks remain a concern due to elevated non-performing loans.
Speaking at the 123rd Monetary Policy Committee (MPC) press briefing on Friday, March 28, Dr. Asiama noted that total bank assets grew by 34.0% at the end of February 2025, compared to 12.1% in the same period last year. The industry’s Capital Adequacy Ratio (CAR), with regulatory reliefs, rose to 14.4% from 13.6% a year earlier, while the ratio stood at 12.1% without reliefs.
The sector also recorded a decline in non-performing loans (NPLs), with the overall NPL ratio falling to 22.6% in February 2025, down from 24.6% in February 2024. Excluding fully provisioned loans in the loss category, the NPL ratio stood at 8.9% at the end of February 2025.
Dr. Asiama stated that key financial soundness indicators, including asset growth, solvency, liquidity, efficiency, and profitability, showed broad improvements, reflecting the effectiveness of regulatory interventions.
Despite these gains, he warned that credit risks remain elevated, underscoring the need for continued oversight. “The Bank’s latest macroprudential risk assessment indicates some moderation in systemic risks on the back of improved solvency, liquidity, efficiency, and profitability,” he said, adding that the BoG will intensify monitoring of undercapitalised banks to safeguard financial stability.
The latest assessment reaffirms the BoG’s commitment to strengthening the banking sector and mitigating vulnerabilities amid evolving economic conditions.
