Total Banking Deposits Hit GH¢302bn as FX Holdings Decline
By Praisebell Rosemond Larbi
Total deposits in Ghana’s banking sector rose to GH¢302.0 billion as at the end of October 2025, although the pace of growth slowed significantly and foreign currency deposits recorded a sharp contraction, according to the November 2025 Banking Sector Development Report.
The report shows that year-on-year growth in total banking deposits moderated markedly to 8.9 per cent in October 2025, down from a strong 38.7 per cent recorded over the same period in 2024. The deceleration reflects changing macroeconomic conditions over the past year, particularly currency dynamics and evolving depositor behaviour.
Despite the slowdown, the Bank of Ghana report indicates that the overall expansion in deposits was largely supported by domestic currency deposits, which continued to post positive growth and increasingly dominate the deposit mix. This suggests growing confidence in cedi-denominated assets amid relative stability in the local currency and improvements in macroeconomic fundamentals.
In contrast, the foreign currency component of total deposits declined sharply in cedi terms. Foreign currency deposits contracted by 21.1 per cent to GH¢71.3 billion in October 2025, compared with a robust growth of 39.8 per cent recorded in the same period a year earlier. The report attributes this reversal primarily to the appreciation of the Ghana cedi over the review period, which reduced the cedi value of foreign-denominated holdings on banks’ balance sheets.
Analysts note that while the contraction reflects valuation effects rather than necessarily a withdrawal of foreign currency funds, it underscores the sensitivity of the banking sector’s balance sheet indicators to exchange rate movements. The stronger cedi, though positive for inflation management and external stability, has moderated the headline growth of foreign currency deposits when measured in local currency terms.
Beyond deposits, the report also highlights developments in the capital position of the banking industry. Shareholders’ funds, comprising paid-up capital and reserves, increased to GH¢53.5 billion in October 2025. However, the growth rate slowed to 41.0 per cent, compared with a higher expansion of 49.5 per cent recorded in October 2024.
The moderation in the growth of shareholders’ funds reflects a combination of base effects and changing earnings dynamics across the sector. Nevertheless, the Bank of Ghana notes that the increase was underpinned by a strong outturn in industry profitability, supported by improved interest income, cost management measures, and gains from treasury operations. In addition, some banks undertook recapitalisation efforts during the period, further strengthening the sector’s capital buffers.
Overall, the November 2025 Banking Sector Development Report suggests that while the banking industry continues to expand in absolute terms, growth dynamics are normalising after the exceptional gains recorded in the previous year. The shift toward stronger domestic deposit growth, coupled with a moderation in foreign currency holdings and capital expansion, points to a sector adjusting to a more stable macroeconomic environment, with implications for liquidity management, credit extension, and balance sheet resilience going forward.
