All 23 banks operating in Ghana have successfully met their regulatory capital requirements. Dr. Johnson Pandit Asiama, Governor of the Bank of Ghana, confirmed this significant milestone. This achievement completes a recovery process that began after the Domestic Debt Exchange Programme (DDEP).
The DDEP had a substantial impact on the banking sector. In 2022, 13 banks breached regulatory capital requirements due to the economic crisis and financial asset impairments. Collective efforts from banks, shareholders, investors, the Ghana Association of Banks, government, and the Bank of Ghana facilitated this recovery.
This development is crucial for Ghana's economic stability. A well-capitalized banking sector is essential for lending to businesses and supporting economic growth. The DDEP, a government initiative to restructure public debt, significantly affected financial institutions' balance sheets. Restoring capital ensures banks can absorb potential losses and continue their operations effectively.
Speaking at the 43rd Annual General Meeting of the Ghana Association of Banks, Dr. Asiama highlighted the progress. He stated that the 2022 audited financial statements showed the initial capital breaches. He added, "Through the collective efforts of banks, shareholders, investors, the Association, Government and the Bank of Ghana, all 23 banks have now met the regulatory capital requirements. This is a significant achievement."
While meeting capital requirements is a major step, the journey for the banking sector continues. Dr. Asiama stressed that banks must now focus on maintaining capital levels that match their risk profiles. They also need to build sufficient buffers to withstand future economic shocks. The Bank of Ghana conducted a comprehensive review of banks' business models in 2025 to identify vulnerabilities. These findings have been shared with institutions, and engagements with boards and senior management are ongoing.
The banking sector has shown significant improvement since 2025. This reflects better macroeconomic conditions and ongoing regulatory reforms. By August 2026, total banking sector assets increased by 20.47% to GHS 500.20 billion. This is up from GHS 415.20 billion a year earlier. The Capital Adequacy Ratio (CAR), which measures a bank's capital against its risk-weighted assets, improved from 18.28% to 19.10%. This figure is well above the regulatory minimum of 13%.
Asset quality has also improved, with the Non-Performing Loans (NPL) ratio declining. It dropped from 20.77% in August 2025 to 15.66% in August 2026. However, Dr. Asiama cautioned against complacency. He stated that the task now is to ensure stronger balance sheets translate into sustainable business models. This also means stronger risk management and greater support for productive economic activity.
The Governor reminded banks of the requirement to reduce their NPL ratios to a prudential limit of 10%. This must be achieved by the end of December 2026. He described asset quality as a critical vulnerability within the banking sector. The Bank of Ghana issued a Notice on Non-Performing Loans in August 2025. This notice aims to strengthen governance for credit risk management and establish NPL limits. It also provides measures for wilful defaulters.
Banks must also strengthen their underwriting standards and credit administration. Loan monitoring, restructuring practices, and collateral management are also key areas. The Bank of Ghana is preparing to issue a Directive on Credit Risk Management. This will complement the existing NPL Notice. This shift emphasizes preventing and managing problem loans, not just provisioning for them.
On liquidity, the Bank of Ghana is publishing the Liquidity Coverage Ratio Directive. This will set prudential liquidity requirements for banks. This is a significant step in strengthening liquidity regulation. The Governor also highlighted increased supervisory attention on digitalization, cybersecurity, and artificial intelligence (AI). The Bank has published a revised Cyber and Information Security Directive. It is also developing a Directive on the Use of Artificial Intelligence in the Financial Sector. This aims to promote responsible innovation while managing new risks.