The Bank of Ghana (BoG) has reported improved banking sector performance, with the non-performing loans (NPLs) ratio declining to 18.7 per cent in February 2026.
Dr Johnson Pandit Asiama, BoG Governor, said this at the 129th Monetary Policy Committee briefing in Accra on Wednesday.
He said the ratio declined from 22.6 per cent recorded in February 2025, reflecting improved asset quality and financial soundness within the sector.
Dr Asiama attributed the development to increased credit to the private sector, as well as a reduction in the stock of non-performing loans due to intensified recovery efforts and write-offs by banks.
He said asset growth was driven by a 57.5 per cent increase in investments, compared to 8.6 per cent growth recorded in the same period in 2025, supported by domestic deposits, borrowings and shareholders’ funds.
“The financial soundness indicators in terms of profitability, liquidity, solvency, asset quality, and efficiency all improved over the period,” he stated.
The Governor noted that the sector’s recovery followed challenges during the 2022–2023 economic crisis, characterised by high inflation, currency depreciation and elevated credit risks.
He said the improvement was occurring alongside broader macroeconomic stabilisation, with average lending rates declining to 19.2 per cent in February 2026 from 30.1 per cent in February 2025.
“This significant reduction in lending rates has begun translating into a gradual increase in private sector credit, reversing the credit contraction that characterised much of 2024 and early 2025, supporting economic activity across sectors,” he said.
Dr Asiama said the rise in investments reflected renewed confidence in the economy and improved risk-return profiles for financial assets.
He, however, noted that the non-performing loans ratio remained above the international benchmark of five per cent, indicating the need for continued efforts to strengthen asset quality.
“Going forward, the Bank has put in place measures for the full implementation of regulatory guidelines that are aimed at reducing NPLs in the banking industry,” he said.
Dr Asiama said the measures included enhanced supervision of credit risk management practices, stricter enforcement of loan classification and provisioning requirements, improved credit information sharing and frameworks to support sustainable lending.
The Monetary Policy Committee reduced the policy rate by 150 basis points to 14 per cent from 15.5 per cent as part of its assessment of prevailing economic conditions.
