The banking sector remains solvent, profitable and liquid - BoG Governor

Dr Asiama, Governor of the Bank of Ghana and chair of the Monetary Policy Committee, recently reported that Ghana's banking sector remains in robust financial health, maintaining its status as solvent, profitable, and liquid. He further highlighted that the sector is witnessing improving asset quality.

The average lending rate for banks has decreased by 15.9 percent, while private sector credit growth has rebounded. In August 2026, the total assets of the banking sector surged by 20.5 percent year-on-year, reaching a substantial GH¢500.2 billion. This growth was fueled by strong deposit mobilization and an increase in other funding sources.

The Capital Adequacy Ratio of the banking system has also improved to 19.1 percent in August 2026, up from 18.3 percent in the same period last year. Moreover, the Non-Performing Loan (NPL) ratio has declined to 15.7 percent from 20.8 percent, thanks to a robust rebound in credit growth.

Despite these positive developments, Dr Asiama cautioned that credit risk remains elevated. He emphasized the importance for banks to adhere to the NPL guidelines to maintain confidence in the financial system. In terms of inflation, Dr Asiama reported that headline inflation stood at 5 percent in August, significantly below the target range of 8±2 percent.

This low inflation level is attributed to domestic cost pressures in housing, transport, and services, along with exchange rate stability, which helps mitigate imported inflation and eases expectations across all surveyed groups.

On the global front, Dr Asiama noted that global tensions have led to constriction of supply chains. Domestically, the Monetary Policy Committee observed continued economic resilience activities.