T-Bills Accounted for 62% of Banks’ Investments in 2025 – BoG
By Praisebell Rosemond Larbi
Treasury bills accounted for the largest share of banks’ investment portfolios in 2025, underscoring the strong preference of financial institutions for short-term government securities amid ongoing adjustments within the financial sector.
According to the January 2026 Monetary Policy Report released by the Bank of Ghana, the share of treasury bills in banks’ investment portfolios rose sharply from 40.3 percent in December 2024 to 62.3 percent in December 2025.
The report indicated that the significant increase reflects a strategic shift by banks toward short-term government instruments, which are generally considered more liquid and less risky compared to longer-term investments. Analysts say this trend also reflects banks’ efforts to maintain flexibility in their asset portfolios while managing liquidity and interest rate risks in a changing macroeconomic environment.
In contrast, the share of long-term securities in banks’ investment portfolios declined considerably during the review period. The report showed that long-term securities accounted for 37.2 percent of banks’ investments in December 2025, compared to 59.3 percent recorded in December 2024.
The central bank explained that the reduction in long-term holdings was consistent with the moderation in investment growth recorded during the year. It also reflects banks’ cautious approach to longer-dated instruments following recent adjustments in the financial markets.
Equity investments continued to play only a marginal role in banks’ investment portfolios. According to the report, the share of equity investments increased slightly from 0.4 percent in December 2024 to 0.5 percent in December 2025, indicating that banks remain largely focused on fixed-income instruments rather than equities.
On the liabilities side, the report highlighted a slight decline in the share of deposits within banks’ funding structure. Deposits accounted for 72.8 percent of banks’ liabilities and shareholders’ funds in December 2025, down from 75.1 percent recorded in December 2024.
The central bank attributed the decline mainly to the slowdown in deposit growth observed during the period under review, as economic conditions and financial sector adjustments influenced savings patterns and banking activities.
Meanwhile, the report noted that banks increased their reliance on borrowings as part of their funding mix. The share of borrowings in banks’ liabilities rose to 8.5 percent in December 2025 from 7.6 percent in December 2024.
Despite these developments, banks’ capital buffers improved during the period. The proportion of shareholders’ funds in total bank funding increased to 13.1 percent in December 2025 from 10.8 percent a year earlier, reflecting stronger capital positions across the industry.
Additionally, the share of other liabilities declined slightly from 6.3 percent in December 2024 to 5.4 percent by the end of December 2025.
Overall, the report suggests that banks strengthened their funding structures while shifting their investment strategies toward short-term government securities, reinforcing liquidity positions and risk management in a gradually stabilising financial environment.
