Ghana’s banking sector witnessed a sharp increase in its Capital Adequacy Ratio (CAR) to 17.5 percent by the close of 2025. This figure rose from 14 percent a year earlier. This indicates stronger solvency levels and improved capacity to absorb financial shocks across the banking system.
This significant improvement comes as banks rebuild their balance sheets after the challenges of debt restructuring and rising credit risk. The CAR, excluding temporary regulatory reliefs, also climbed to 17.5 percent from 11.3 percent. This shows banks are increasingly relying on their own internally generated capital.
This recovery positions the banking sector within a broader context of Ghana’s economic stabilisation efforts. The strengthening capital base provides a vital foundation for supporting private-sector credit growth. Data from the Bank of Ghana’s March 2026 Monetary Policy Report further confirms these positive trends. Industry assets reached GHS 465.4 billion by February 2026, supported by increased domestic investments and better deposit mobilisation. Shareholders' funds also surged by 44.1 percent to GHS 60.6 billion, driven by improved profitability and recapitalisation.
Industry analysis from the Ghana Association of Banks highlighted these improved figures. Their findings suggest the sector is moving past a phase of merely surviving and repairing its balance sheets. It is now entering a period of consolidation and cautious expansion.
For investors and depositors, these stronger capital buffers will likely boost confidence in the financial system. This follows years of instability caused by Ghana’s domestic debt exchange programme and other macroeconomic challenges. Analysts believe this improved solvency gives banks more flexibility to handle future economic downturns. It also allows them to support economic activity as the broader economy becomes more stable.
Asset quality showed notable improvement. Non-performing loans (NPLs) decreased from 21.8 percent to 18.9 percent. NPLs, excluding loans in the loss category, fell even more sharply from 8.5 percent to 5 percent. This decline indicates more effective loan recovery efforts, stricter lending standards, and better credit risk management by banks.
Alongside the stronger capital position, the sector experienced overall balance sheet growth. Total banking sector assets expanded by 21.5 percent to GHS 446.9 billion in 2025. Deposits also increased by 17.8 percent to GHS 325.3 billion. Total advances, which represent loans given out, grew by 16 percent to GHS 111 billion. This reflects a gradual return of lending activity to businesses and households across Ghana.
The latest figures mean Ghana’s lenders are emerging from a difficult period with greater liquidity, improved asset quality, and a more stable funding base. These conditions are crucial for policymakers who hope to see a sustained recovery in economic activity. The financial sector’s resilience is key to driving broader economic growth and stability.