Two Banks Remain Undercapitalised as at December 2025 – BoG
By Praisebell Rosemond Larbi
The Bank of Ghana (BoG) has disclosed that two banks, Universal Merchant Bank (UMB) and Prudential Bank Ghana Limited, remained undercapitalised as at December 2025, despite broad improvements in capital adequacy across the banking sector.
The Governor of the Bank of Ghana, Dr. Johnson Asiamah, made the disclosure while providing an update on the health of the financial sector, noting that although the overall banking system remains stable, targeted interventions are still required to address residual weaknesses in specific institutions.
According to the Governor, both banks have submitted recapitalisation plans to the Central Bank, and commitments have been made by key stakeholders to close the identified capital shortfalls within agreed timelines.
For Universal Merchant Bank (UMB), Dr. Asiamah disclosed that the recapitalisation deadline has been extended to end-March 2026, following ongoing engagements with the bank’s major shareholders. The extension, he explained, is intended to allow sufficient time for strategic shareholders, particularly the Social Security and National Insurance Trust (SSNIT) and the State Insurance Company (SIC), to fulfil their proposed capital injection commitments.
“With respect to UMB, the recapitalisation plans have been extended to end-March 2026 to enable other key shareholders, including SSNIT and SIC, to make good the proposed capital injections,” the Governor stated.
He added that active discussions are ongoing between the Bank of Ghana and the key stakeholders, including SSNIT, SIC, and the Ghana Amalgamated Trust (GAT), to ensure that the recapitalisation process is completed in a timely and orderly manner.
Dr. Asiamah stressed that the Central Bank is closely monitoring progress on the capital restoration plan and will take the necessary supervisory actions to ensure compliance with prudential requirements, while safeguarding depositor funds and preserving financial system stability.
On Prudential Bank Ghana Limited, the Governor indicated that the Government of Ghana has committed to closing the bank’s capital gap, in line with an agreed restructuring framework.
He explained that the intervention is being implemented under the Overarching Restructuring Strategy and Plan, jointly developed by the Government of Ghana, the Bank of Ghana, and Prudential Bank Limited, aimed at restoring the bank to full regulatory compliance and long-term viability.
According to the Governor, the strategy outlines clear steps for capital restoration, balance sheet strengthening, and improved governance, ensuring that Prudential Bank remains a going concern while meeting minimum capital adequacy requirements.
Dr. Asiamah emphasised that the Bank of Ghana’s approach to resolving undercapitalised institutions remains guided by principles of financial stability, depositor protection, and orderly resolution, noting that regulatory forbearance is only applied within clearly defined frameworks and timelines.
Meanwhile, the Governor clarified the ownership structure of the Agricultural Development Bank (ADB), following public speculation about government involvement in the banking sector. He stated that the Government of Ghana remains the majority shareholder of ADB, holding 88.16 per cent of the bank’s shares, while the Bank of Ghana holds a 9.66 per cent stake.
The clarification, he said, underscores the state’s strategic interest in ADB, given its role in financing agriculture and agribusiness, while also reinforcing transparency around public sector participation in the banking industry.
Dr. Asiamah noted that the broader banking sector continues to show resilience, supported by improved asset quality, stronger liquidity buffers, and enhanced regulatory oversight following recent financial sector reforms. However, he cautioned that sustained capital strength remains critical, particularly as Ghana prepares for a post-IMF programme environment marked by tighter global financial conditions and heightened investor scrutiny.
He reiterated the Central Bank’s commitment to ensuring that all licensed banks operate within prescribed prudential standards, adding that capital adequacy remains a cornerstone of financial system stability.
The Governor concluded that while progress has been made in stabilising the sector, closing the remaining capital gaps is essential to fully restoring confidence and strengthening the banking system’s capacity to support economic growth.
