BoG Stress Tests Show Banking Sector Remains Resilient Amid Macroeconomic Pressures
Stress tests conducted by the Bank of Ghana (BoG) in the first half of 2025 have shown that the country’s banking sector remains resilient to adverse macroeconomic developments, supported by stronger capital buffers and improved profitability.
According to the BoG’s latest Financial Stability Review, the sector’s capital position increased by 48.5 percent to GH¢48.0 billion in the first half of 2025, reflecting efforts by banks to strengthen their balance sheets through profit retention and capital injections.
The stress tests assessed the impact of evolving macroeconomic conditions on the solvency and stability of the banking sector. The report observed that while a deterioration in macroeconomic conditions could weigh on asset quality and operational costs, such effects would likely be offset by gains from net interest income.
“The Bank’s stress test results suggest that the banking sector’s resilience to shocks has improved due to profit retention, capital injections, adequate liquidity, and moderation in the build-up of new non-performing loans,” the report stated.
It further noted that positive macroeconomic developments have underpinned the banking sector’s performance and moderated systemic risk during the review period.
Despite the improved outlook, the report cautioned that debt servicing remains a challenge for both the corporate and household sectors.
“It is expected that the ongoing macroeconomic recovery, restructuring of loans to eligible borrowers, and implementation of measures outlined in the Bank of Ghana’s Regulatory Notice to banks on reducing NPLs will help address this challenge,” the report added.
In the near term, the central bank observed that sustaining macroeconomic gains would be critical to enhancing the banking sector’s intermediation capacity and supporting broader economic recovery.
