Ghana's Financial Stability Council (FSC) has ramped up efforts to strengthen the nation's financial system. These wide-ranging reforms aim to reduce risks and make the financial sector more stable and resilient. The Financial Stability Review Report 2025 outlines these initiatives.
Key regulators like the Bank of Ghana (BoG), Securities and Exchange Commission (SEC), National Insurance Commission (NIC), and National Pensions Regulatory Authority (NPRA) are part of the FSC. They have increased cooperation to address weaknesses across the system. The Council adopted World Bank recommendations to improve its operations and boost coordination among its members.
This renewed focus comes after Ghana faced significant economic challenges in recent years, including high inflation and currency depreciation. A stable financial sector is crucial for investor confidence and sustained economic growth. The BoG recently reported a 10.9% increase in headline inflation for May 2024, down from 11.0% in April 2024, showing ongoing efforts to manage economic stability. The overall GHS 60.8 billion loss posted by the BoG in 2022 highlighted the need for stronger financial oversight.
“The Council has increased cooperation among regulators to help maintain financial stability and support growth in the sector,” the report states. This collaborative approach enhances the ability to identify and respond to emerging threats. Technical teams are also receiving training to better manage system risks.
One major step is creating a system to monitor risks in the virtual assets sector. This follows the passage of the Virtual Asset Service Providers Act, 2025. The FSC is also preparing for Ghana’s third Mutual Evaluation by GIABA. GIABA is a regional body that assesses efforts against money laundering and terrorism financing. These measures are critical for Ghana's financial security and international reputation.
The FSC is working with the Ghana Statistical Service (GSS) to build a reliable real estate database. This database will help track developments and risks in the property market. Such data is essential for understanding credit exposure and preventing bubbles. In the capital market, the Council supports the Bank Listing Project, encouraging banks to list on the Ghana Stock Exchange (GSE). This initiative aims to help banks access more funding and improve transparency. Banks currently listed on the GSE include GCB Bank plc and Ecobank Ghana.
For the insurance sector, the FSC backed policies requiring local insurance for imports. This move is designed to reduce foreign exchange outflows and strengthen local insurance companies. Collaborating with the National Identification Authority (NIA), the Council is tackling identity verification problems. Solving these issues will improve financial inclusion and effective regulation for all citizens. The FSC also supports new laws and policies to protect financial consumers and ensure fair competition. Stakeholders will closely monitor the implementation of these consumer protection measures. They will look for their impact on market conduct and public trust. The banking sector’s non-performing loans (NPLs) ratio, which stood at 25.3% in November 2020, also underscores the continuing need for robust regulatory oversight and risk management within the financial system.