Ghana’s banking sector ended 2025 on a much stronger footing, with banks improving their financial strength, reducing bad loans, and increasing lending activity clear signs of recovery from recent economic challenges.
According to the latest industry report by the Ghana Association of Banks, the sector’s Capital Adequacy Ratio (CAR) rose significantly from 14% to 17.5% in 2025.
The CAR measures how strong banks are financially by comparing their capital to the risks they take through lending and investments.
A higher ratio means banks are better able to absorb losses and protect customer deposits during economic difficulties.
The improvement was even more notable because banks achieved the gains largely without relying on temporary regulatory relief measures introduced during the economic crisis.
CAR without regulatory support increased sharply from 11.3% to 17.5%, showing that banks are now depending more on stronger internal financial positions.
The report suggests the industry is steadily regaining stability after years of high inflation, debt restructuring pressures, and weakening loan quality.
Banks also improved the quality of their loan books in 2025. Non-performing loans (NPLs), commonly known as bad loans, declined from 21.8% to 18.9%.
Even more encouraging, NPLs excluding fully impaired or loss-category loans dropped from 8.5% to 5%, reflecting better credit risk management, stricter lending standards, and stronger loan recovery efforts.
For businesses and depositors, the stronger capital position means banks are now better prepared to absorb financial shocks, support lending, and protect customer funds during periods of uncertainty.
The banking sector also recorded strong overall growth. Total industry assets increased by 21.5%, rising from ₵367.8 billion in 2024 to ₵446.9 billion in 2025.
Deposits grew by 17.8% to ₵325.3 billion, while total loans and advances rose by 16% to ₵111 billion.
The increase in deposits points to improving public confidence in the banking system, while higher lending levels suggest banks are gradually expanding credit support to businesses and households again.
Overall, the latest figures show that Ghana’s banking sector is moving beyond crisis recovery into a more stable growth phase, supported by stronger balance sheets, healthier loan portfolios, and improved risk management.
