Banking Sector Surges as Credit Growth and Asset Strength Rebound — BoG
Ghana’s banking sector recorded a strong turnaround in performance, with significant growth in assets, improved credit expansion, and better asset quality, Governor of the Bank of Ghana Dr Johnson Asiama has disclosed.
Speaking at the 130th Monetary Policy Committee (MPC) press briefing, Dr Asiama highlighted that the sector’s recovery reflects renewed confidence and improved financial intermediation, even as global uncertainties continue to pose risks.
According to him, total banking sector assets expanded by 26.6 percent year-on-year to reach 493.9 billion in April 2026, driven largely by growth in deposits, domestic borrowings, and shareholder funds. Investments were a major contributor, surging by 52.6 per cent compared to 27.8 percent recorded during the same period last year.
The governor noted that credit growth has also rebounded strongly, signalling renewed support for private sector activity. Private sector credit increased by 28.7 per cent in nominal terms in April 2026, compared to 19.9 per cent growth a year earlier. In real terms, this represents a 24.5 percent expansion, a sharp recovery from the 1.1 percent contraction recorded over the same period in 2025.
Dr. Asiama explained that the improved credit conditions are aligned with declining lending rates, which have dropped significantly to an average of 16.3 per cent from 27.4 percent a year ago. This trend, he said, is helping to stimulate business activity and economic recovery.
He further pointed to improvements in asset quality, noting that the industry’s capital adequacy ratio rose to 22.3 percent in April 2026 from 17.5 percent a year earlier, reflecting stronger buffers within the banking system.
Additionally, the non-performing loans (NPL) ratio declined to 18 percent from 23.6 percent, indicating a reduction in credit risk exposure.
Despite these gains, the governor cautioned that elevated credit risk remains a concern and stressed the need for strict adherence to regulatory guidelines to sustain the progress made in reducing NPLs.
Dr Asiama attributed the sector’s improved performance to broader macroeconomic stability, including easing inflation expectations, declining interest rates, and strengthened fiscal discipline. He noted that these developments have created a more supportive environment for financial sector growth.
He also indicated that the resilience of the banking sector is occurring against the backdrop of global economic pressures, including rising crude oil prices and renewed inflationary concerns in advanced and emerging economies, which could tighten global financial conditions.
The governor reaffirmed the central bank’s commitment to maintaining stability in the financial system while ensuring that banks continue to play their critical role in supporting economic growth through efficient credit delivery.
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