Ghana’s Banking System Now Liquid, Solvent and Profitable – BoG Governor
The Bank of Ghana says Ghana’s banking sector has strengthened significantly and is now liquid, solvent and profitable, positioning the financial system to better support economic recovery and job creation.
Governor of the central bank, Johnson Pandit Asiama, disclosed this while briefing the Parliament’s Committee on Economy and Development in Accra on the performance of the banking industry and the outlook for the financial sector.
According to the Governor, the sector has made substantial progress since the beginning of 2025, when banks were still adjusting to the effects of the Domestic Debt Exchange Programme (DDEP), which had placed pressure on capital buffers and weakened investor confidence.
“A stronger banking system means more credit flowing into the economy, where jobs and growth are created,” Dr. Asiama told lawmakers, stressing that macroeconomic stability must be reflected in the resilience of the country’s financial institutions.
Balance Sheets Expand
The Governor also highlighted strong growth in banking sector balance sheets.
Total banking sector assets increased significantly from GH₵368 billion to GH₵447 billion, while customer deposits rose by nearly 18 percent, climbing from GH₵276 billion to GH₵325 billion.
Liquidity conditions across the industry remain robust, with liquid assets covering approximately 96 percent of total deposits, providing banks with a strong cushion to meet withdrawal demands and other financial obligations.
Credit activity within the economy is also showing signs of recovery.
Gross loans increased from GH₵95 billion to GH₵111 billion, while cumulative new loan disbursements rose from GH₵80.95 billion in October 2025 to GH₵104.17 billion by December 2025.
Credit to Private Sector Rebounds
Private sector credit growth has also accelerated sharply.
According to the Governor, nominal credit growth has surpassed 19 percent, while real credit growth reached 13 percent, compared with just 2 percent growth recorded the previous year.
Dr. Asiama said these improvements demonstrate the effectiveness of policy measures implemented by the central bank to restore stability in the financial sector.
“These indicators show that the banking system today is liquid, solvent and profitable, and increasingly positioned to support Ghana’s economic recovery,” he stated.
He explained that a stronger banking sector would enable more credit to flow into the economy, helping businesses expand operations, invest in new projects and create employment opportunities.
Industry analysts say sustained improvements in capital strength, liquidity and asset quality will be crucial in ensuring that Ghana’s banking system remains resilient and capable of supporting long-term economic growth.
