Banks that hold restructured government bonds demonstrate that the banking industry appears resilient – BoG

The Bank of Ghana conducted a stress test on banks that hold restructured government bonds, and the banking sector appears immune to shocks caused by the repricing of such government securities.

This follows the falling trend in money market interest rates.

Furthermore, the Central Bank stated that banks’ growing solid capital holdings and proactive measures to estimate and record required impairments gave some buffer to their resilience.

The stress tests evaluated at this round of the Monetary Policy Committee (MPC) focused on the implications of revaluing banks’ holdings of restructured government bonds under current financial market circumstances for the banking sector’s solvency.

Source: newsthemegh.com