Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama has said that the banking sector remains solvent, profitable, and liquid, alongside improving asset quality.
In August 2026, he said the total assets of the sector increased by 20.5 percent, year-on-year, to GH¢500.2 billion, supported by robust deposit mobilisation and growth in other funding sources.
The Capital Adequacy Ratio of the banking system improved further to 19.1 percent in August 2026 from 18.3 percent in August 2025.
Asset quality also improved, with the NonPerforming Loan (NPL) ratio declining to 15.7 percent from 20.8 percent over the same period, supported by the strong rebound in credit growth, Dr Asiama said during the 132nd Monetary Policy Committee (MPC) press conference.
Despite the improvement in the industry’s asset quality, he noted that credit risk remained elevated.
“Banks are, therefore, expected to adhere to the NPL guidelines to bolster confidence in the financial system,” he said.
On monetary developments, Dr Asiama indicated that reserve money grew strongly by 29.7 percent, year-on-year, in August 2026, compared with 4.5 percent in August 2025.
The expansion was underpinned by growth in net domestic assets, mainly reflecting the impact of the policy change on reserve requirements. However, net foreign assets declined, which helped moderate the overall growth in reserve money.
Broad money supply grew by 20.4 percent, year-on-year, in August 2026, up from 16.6 percent in August 2025. Interest rates on Government’s short-term instruments moderated further in August 2026.
The 91-day Treasury bill rate declined to 5.4 percent from 10.3 percent a year earlier. The average lending rate for the banking sector also declined to 15.9 percent from 24.2 percent over the same comparative period.
The low-interest rate environment, ease in credit stance by banks, and a pick-up in credit demand contributed to higher credit growth in the banking sector.
Private sector credit growth rebounded to 35.5 percent in August 2026 from 13.3 percent in August 2025. In real terms, private sector growth was 29.0 percent, relative to 1.7 percent over the same comparative period.
