Ghana’s Banking Sector Shows Strong Growth and Resilience
Ghana’s banking sector is showing solid signs of recovery and resilience, with key indicators pointing to strong asset growth, improved capital buffers, and healthier loan books, according to the Governor of the Bank of Ghana, Dr. Johnson Asiama.
Speaking at the latest Monetary Policy Committee (MPC) press briefing, Dr. Asiama said the sector’s Financial Soundness Indicators (FSIs) reflected a generally positive trend in the first half of 2025, a development that could have far-reaching impacts on businesses, households, and the broader Ghanaian economy.
Strong Asset and Deposit Growth
“The banking industry continues to recover strongly,” Dr. Asiama noted. “Total assets of the sector rose from GH₵323.2 billion in June 2024 to GH₵384.3 billion by June 2025, while total deposits also grew significantly—from GH₵245.9 billion to GH₵280.1 billion over the same period.”
This expansion in assets and deposits signals increasing confidence in the banking system, both from depositors and investors. For ordinary Ghanaians, this could mean greater access to credit and savings tools, improved digital banking services, and enhanced financial stability.
Capital Strength and Lower NPLs
Crucially, the sector’s Capital Adequacy Ratio (CAR)—a key measure of a bank’s ability to absorb shocks—rose to 19.7% in June 2025, up from 14.3% a year earlier. This improvement has been driven by fresh capital injections, retained earnings, and tighter risk controls.
“In addition to recapitalisation efforts, the enforcement of strict credit underwriting standards has helped reduce risk and strengthen the sector’s resilience,” the Governor said.
One of the key improvements highlighted by the BoG was the decline in the non-performing loans (NPL) ratio. This drop is largely due to slower growth in bad loans compared to credit expansion, showing that banks are lending more responsibly and that borrowers are better able to repay their loans.
Economic Spillovers
The strength of the banking sector is not just good news for bankers—it is a cornerstone of the economy’s recovery. With a sound financial system, banks are better positioned to lend to small and medium enterprises (SMEs), finance public infrastructure, and support household spending through mortgages, car loans, and educational financing.
For a Ghanaian entrepreneur or farmer, for example, a well-capitalised and liquid bank is more likely to approve a loan application and offer favourable repayment terms. This kind of financial support has a ripple effect: more business growth, more job creation, and increased tax revenue for government services.
Looking Ahead
Dr. Asiama emphasised that the Bank of Ghana will continue its oversight to ensure banks remain sound, stable, and efficient, especially in light of evolving global financial pressures.
“As economic conditions continue to improve, the banking sector is expected to play an even more pivotal role in supporting Ghana’s development agenda,” he stated.
With sustained macroeconomic stability, strong regulatory oversight, and prudent management by banks, Ghana’s financial system is well on its way to becoming a true engine of inclusive economic growth.
