Deposit money banks continue to be stable, lucrative, and well-capitalized, according to Dr. Johnson Asiama, Governor of the Bank of Ghana (BoG).
According to him, the financial soundness metrics—such as solvency, profitability, asset quality, and efficiency indicators—all show a comparatively better year over year.
He said that the Non-Performing Loan (NPL) ratio decreased from 22.7 percent in October 2024 to 19.5 percent in October 2025 due to a decrease in the stock of NPLs and an increase in bank credit.
He stated at the 127th Moneyray Policy Committee (MPC) press conference in Accra that “However, credit risks remain elevated and looking ahead, policy actions to recapitalise the few undercapitalised banks and full implementation of the new regulatory guidelines aimed at reducing NPLs would further strengthen the banking industry,”
Dr. Asiama added that interest rates have typically decreased in tandem with the Monetary Policy Rate’s drop.
According to him, the interbank weighted average rate decreased from 27.7 percent in October 2024 to 21.0 percent in October 2025.
“The interest equivalent of the 91- day benchmark rate eased to 10.6 percent in October 2025, from 25.8 percent in October 2024. Also, average bank lending rate declined to 22.2 percent compared with 30.5 percent in the same comparative period.”
“This has triggered a gradual recovery in private sector credit growth. From 7.1 percent contraction in May 2025, private sector credit growth, in real terms, has improved to 5.4 percent in October 2025,” he reiterated.
Source: newsthemegh.com