Banking sector remains resilient despite macroeconomic challenges

Stress tests conducted by the Bank of Ghana (BoG) in the first half of the year indicate that the banking sector remains resilient to adverse macroeconomic developments.

This resilience is attributed to the strong capital positions of banks, which rose by 48.5 per cent to GHS48.0 billion in the first half of 2025.

The stress tests assessed the impact of macroeconomic developments on the solvency outlook of the banking sector.

The report noted that while deteriorating macroeconomic conditions could affect asset quality and raise operational costs, these risks would likely be offset by gains in net interest income.

It further stated that the macro-prudential assessment suggests positive macroeconomic trends have supported banking sector performance and helped moderate systemic risk during the first half of 2025.

However, the report warned that debt servicing remains a challenge for both corporate and household sectors.

“It is expected that the ongoing macroeconomic recovery, restructuring of loans for eligible borrowers, and implementation of measures outlined in the Bank of Ghana’s Regulatory Notice to banks on reducing Non-Performing Loans (NPLs) will help address this challenge,” the report said.