Banks NPL ratio of 16.1% is still too high – S&P
In its rating assessment of Ghana, the US-based firm said credit risk in the banking system remains elevated, after years of macroeconomic instability, the government default, and the debt restructuring.
S&P Global has labeled Ghana's banking Non-Performing Loan ratio of 16.1% as excessive. The ratings agency attributes this figure to the domestic debt exchange program in 2022, government arrears to suppliers and contractors, and inflationary pressures on households and businesses. S&P maintains that credit risk in Ghana's banking sector remains elevated, stemming from years of economic instability, government default, and debt restructuring.
The agency notes that 13 local banks required recapitalization following the domestic debt restructuring in 2022. However, it highlights that five banks, including one state-owned institution, are still undercapitalized, despite meeting recapitalization requirements. S&P contrasts this with the Bank of Ghana's assertion that all banks have fulfilled the new minimum capital requirement.
The agency also points out that while inflationary pressures have been rising in 2026, they are expected to stabilize compared to Ghana's historical norms. S&P anticipates that low inflation, which was prevalent at the beginning of 2026, will not persist and is likely to remain at the higher end of the Bank of Ghana's 6%-10% target until 2029.
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- Banks NPL ratio of 16.1% is still too high – S&P myjoyonline.com
