Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, has assured that deposit money banks remain sound, profitable, and well capitalised, even as he warns that credit risks in the sector continue to be high.
Addressing the 127th Monetary Policy Committee (MPC) press conference in Accra, Dr Asiama highlighted year-on-year improvements in key financial soundness indicators such as solvency, profitability, asset quality, and efficiency.
He revealed that the Non-Performing Loan (NPL) ratio had declined to 19.5 per cent in October 2025, down from 22.7 per cent in October 2024, driven by increased bank lending and a reduction in the stock of NPLs.
“However, credit risks remain elevated,” Dr Asiama cautioned. “Looking ahead, policy measures to recapitalise the few undercapitalised banks, along with full implementation of the new regulatory guidelines aimed at reducing NPLs, will further bolster the resilience of our banking sector.”
He also noted that interest rates have generally declined in line with reductions in the Monetary Policy Rate. The interbank weighted average rate fell to 21.0 per cent in October 2025, from 27.7 per cent in October 2024, while the interest equivalent of the 91-day benchmark rate dropped to 10.6 per cent, from 25.8 per cent over the same period.
According to the Governor, the average bank lending rate also eased to 22.2 per cent, from 30.5 per cent the previous year, supporting a gradual rebound in private sector credit.
“From a 7.1 per cent contraction in May 2025, private sector credit growth in real terms has improved to 5.4 per cent as of October 2025,” he said.