Ghana’s banking industry has delivered a stellar performance in the first half of 2026, with total assets crossing the half-trillion-cedi mark for the first time, according to the latest data released by the Bank of Ghana (BoG). The figures paint a picture of a sector that is not only expanding but also healing from the scars of past crises, as loan quality improves and capital buffers strengthen.
The central bank’s summary of financial soundness indicators, published on Tuesday, shows that total banking sector assets surged to GH¢502.4 billion as of June 2026, up from GH¢384.3 billion in June 2025 — a remarkable 30.7% year-on-year increase. Customer deposits followed a similar trajectory, climbing to GH¢370.8 billion from GH¢280.1 billion, while total advances (loans and advances to customers) rose to GH¢124.3 billion from GH¢89.7 billion, representing a 38.6% jump.
A Sector Healing from the Pandemic and Debt Restructuring
The robust growth comes against the backdrop of a gradual economic recovery, but also reflects the banking sector’s resilience after the difficult years of 2022–2023, when inflation peaked above 50% and the government’s domestic debt exchange program (DDEP) forced banks to absorb significant losses on their sovereign bond holdings. At the height of that turmoil, the non-performing loan (NPL) ratio reached alarming levels, exceeding 25% in some quarters.
However, the latest BoG data signals a decisive turnaround. The NPL ratio dropped to 16.1% in June 2026, down sharply from 23.1% a year earlier. This improvement is attributed to stricter credit risk assessments, a gradual recovery in borrower incomes, and the clearing of legacy bad loans from bank balance sheets. While 16.1% remains above the prudential threshold of 10%, analysts note that the pace of improvement is encouraging.
Capital Adequacy and Liquidity Strengthen
The sector’s capital position also improved. The Capital Adequacy Ratio (CAR) — a key measure of a bank’s ability to absorb losses — rose to 20.4% from 19.7% over the review period, comfortably above the BoG’s minimum requirement of 13%. This suggests that banks are retaining earnings and have successfully recapitalised following the DDEP shocks.
Liquidity conditions have also firmed up. The ratio of core liquid assets to total assets increased to 32.6% from 28.9%, while the ratio of core liquid assets to short-term liabilities rose to 39.4% from 35.3%. These improvements mean that banks are better positioned to meet withdrawal demands without resorting to emergency borrowing, reducing systemic risk.
Macroeconomic Tailwinds Drive Growth
The banking sector’s strong showing coincides with broader macroeconomic stabilisation. Ghana’s international reserves have been bolstered by robust export earnings, particularly from gold and cocoa, while oil production has remained steady. The cedi, which had suffered severe depreciation in 2024–2025, has shown relative stability in the first half of 2026, helping to calm inflation expectations.
Business activity, as measured by the Bank of Ghana’s composite index of economic activity, has also picked up, supported by increased government spending on infrastructure and a modest revival in private sector investment. This has translated into higher demand for credit, explaining the sharp increase in total advances.
Industry Experts Weigh In
Speaking to the Ghana News Agency, economist Dr. John Kwaku Asare described the figures as “encouraging, but not yet a cause for complacency.” He noted that while asset growth is impressive, banks must remain vigilant about the quality of new loans. “The drop in NPLs is welcome, but we must ensure that the improved ratio is not due to aggressive write-offs alone, but to genuine repayment capacity among borrowers,” he cautioned.
Meanwhile, the Ghana Association of Bankers (GAB) issued a statement praising the BoG’s regulatory oversight and the sector’s collective effort. “The resilience we see today is the fruit of painful reforms, including the recapitalisation exercise and the clean-up of the banking sector in 2017–2018. We are now reaping the dividends of that discipline,” the statement read.
Outlook for the Second Half
Looking ahead, the banking sector is expected to maintain its upward trajectory, though risks remain. Rising global interest rates could exert pressure on foreign capital inflows, while fiscal consolidation under the IMF programme may limit government spending, potentially cooling economic activity. Additionally, the impending 30% transport fare hike (as reported elsewhere today) could stoke inflationary pressures, which would erode borrowers’ real incomes and potentially reverse the NPL improvement.
Nevertheless, the BoG remains optimistic. In its accompanying commentary, the central bank noted that the sector’s “strong capital and liquidity buffers” provide a cushion against external shocks, and that ongoing digitalisation efforts — including the rapid uptake of mobile banking and agency banking — are expanding financial inclusion and deepening deposit mobilisation.
By the Numbers:
Metric June 2025 June 2026 Change
Total Assets GH¢384.3bn GH¢502.4bn +30.7%
Customer Deposits GH¢280.1bn GH¢370.8bn +32.4%
Total Advances GH¢89.7bn GH¢124.3bn +38.6%
NPL Ratio 23.1% 16.1% -7.0 ppts
CAR 19.7% 20.4% +0.7 ppts
Core Liquid Assets/Total Assets 28.9% 32.6% +3.7 ppts
Core Liquid Assets/Short-term Liabilities 35.3% 39.4% +4.1 ppts
Conclusion
Ghana’s banking sector has emerged from the turbulence of recent years leaner, more capitalised, and more resilient. With total assets now exceeding GH¢500 billion and bad loans declining meaningfully, the industry is poised to play a pivotal role in financing the country’s economic recovery. However, prudent lending and continued macroeconomic discipline will be essential to sustain this momentum through the rest of 2026 and beyond.
