The Bank of Ghana’s (BoG) Monetary Policy Report for March 2026 has reflected an improved balance sheet resilience and stronger domestic market positioning with the banking sector’s total industry assets rising to GH¢465.4 billion as at February 2026.
Although the 21 per cent year-on-year growth is moderating from the previous year, it signals a more stable and sustainable expansion path, underpinned by robust domestic asset growth and improving funding conditions.
Among the key highlights from the report is the increasing dominance of domestic assets, which now account for 93.8 per cent of total industry assets, up from 88 per cent in 2025, underscoring a stronger local orientation of bank balance sheets and reduced exposure to external volatility.
Also emerging as a major driver of growth was investment activity, with total investments surging by 57.5 per cent to GH¢192.8 billion. The expansion was largely driven by a sharp rise in short-term instruments, which recorded a remarkable 130.1 per cent growth, reflecting improved yields in the money market and more active liquidity management by banks.
Deposits remained the backbone of the sector in terms of funding, increasing by 18 per cent to GH¢338.5 billion, supported mainly by domestic inflows; an indication of growing public confidence in the banking system.
The sector’s capital position also strengthened significantly, with shareholders’ funds rising by 44.1 per cent to GH¢60.6 billion, buoyed by strong profitability and ongoing recapitalisation efforts.
With a moderated credit growth, industry analysts say the achievement is part of a cautious rebalancing, as banks prioritise asset quality and risk management in a stabilising macroeconomic environment.
The development, in totality, signals a banking sector that is not just expanding but also doing so on stronger fundamentals, positioning it to better support the country’s economic recovery.
