Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, has expressed optimism about the steady progress of Ghana’s banking industry, pointing to stronger financial indicators and improved stability across the sector.
Speaking during a meeting with chief executive officers of commercial banks in Accra, Dr Asiama said banks continue to show resilience despite economic challenges. He revealed that the sector’s total assets grew by 26.6 per cent, reaching GH¢493.9 billion.
He also highlighted a significant improvement in capital strength. The industry’s Capital Adequacy Ratio rose to 22.3 per cent, compared to 17.5 per cent during the same period last year. At the same time, banks reduced their Non-Performing Loan (NPL) ratio from 23.6 per cent to 18.0 per cent, reflecting better asset quality.
According to the Governor, these gains demonstrate the commitment and hard work of financial institutions across the country. However, he cautioned banks against becoming overly comfortable with the progress made so far.
“Nevertheless, we must not become complacent. Elevated credit risks remain a concern, and banks must continue to strengthen credit underwriting standards, improve recovery processes, and comply fully with regulatory requirements aimed at reducing non-performing loans to tolerable prudential targets,” he said.
Dr Asiama stressed that stable economic conditions should encourage banks to focus more on supporting productive sectors of the economy. He noted that the long-term health of the financial system depends largely on the performance of businesses and industries that drive growth and create jobs.
“As we sustain stable macroeconomic conditions, let me reiterate that the banking industry must increasingly turn its attention to its fundamental role of financial intermediation and support for productive economic activity. The long-term sustainability of our financial system ultimately depends on the strength of the real sector.”
He explained that strong manufacturing, competitive agriculture, efficient service industries, and successful export businesses remain essential to building a vibrant economy. These sectors, he said, generate quality lending opportunities, create employment, and support sustainable growth.
Dr Asiama further noted that inflation remains largely under control. Headline inflation increased slightly from 3.2 per cent in March to 3.4 per cent in April and 3.7 per cent in May 2026. Despite the rise, he said underlying inflationary pressures remain weak, as reflected in the continued decline of core inflation.
He also praised the government’s fiscal management efforts, noting that spending controls and prudent policies helped deliver a fiscal surplus equivalent to 0.1 per cent of GDP in the first quarter of 2026.
“Fiscal performance has remained supportive. Expenditure containment measures and prudent fiscal management resulted in a fiscal surplus of 0.1 per cent of GDP during the first quarter of 2026, exceeding programme expectations.”
On the external front, the Governor said Ghana’s economy remains well-positioned to withstand global shocks.
“The external sector remains resilient, too. The current account surplus strengthened to US$3.1 billion during the first quarter of the year, supported by strong export earnings from gold and cocoa, together with stable remittance inflows. Gross International Reserves increased to US$14.4 billion, providing import cover of 5.7 months and strengthening buffers against external shocks,” the Governor said.
