The Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, has cautioned banks against complacency following significant gains recorded in the country’s macroeconomic stability and banking sector recovery.
He said that although inflation had remained in single digits, and the exchange rate and banking sector relatively stable and resilient, significant residual risks still existed within the financial system.
The Governor said while all 23 banks had successfully met regulatory capital requirements following the Domestic Debt Exchange Programme (DDEP) crisis, financial institutions must not become complacent but should build stronger capital buffers to withstand future shocks.
“Now, all 23 banks have met the regulatory capital requirements. This, to us, is a significant achievement,” he added.
Speaking at the 43rd annual general meeting (AGM) of the Ghana Association of Banks (GAB) in Accra yesterday, Dr Asiama, however, said the task now was to ensure that the stronger balance sheets translated into sustainable business models, stronger risk management and greater support for productive economic growth.
Event
The 43rd annual general meeting of GAB was to review the association’s activities and performance for the 2025 financial year, including the President’s Report and audited financial statements for the year ended December 31, 2025.
The meeting was on the theme: “From stability to transformation: Building a resilient, inclusive and sustainable banking industry.”
In attendance were the Governor, the President of GAB, Kwamina Asomaning, the Chief Executive Officer of GAB, John Awuah, and heads of banks and other industry stakeholders.
Also launched was the sixth edition of the GAB Bankers’ Voice Magazine, which highlights developments and issues shaping the banking industry.
Sector performance
The Governor further said that recording significant improvements in the banking sector reflected improved macroeconomic conditions and continued regulatory and supervisory reforms by the central bank.
As of the end of August 2026, total banking sector assets had increased by 20.5 per cent to GH¢500.2 billion, from GH¢415 billion a year earlier.
The sector’s capital adequacy ratio also improved from 18.3 per cent to 19.1 per cent, above the 13 per cent regulatory minimum, while the non-performing loan (NPL) ratio declined from 20.7 per cent in August 2025, to 15.7 per cent in August 2026.
Dr Asiama said the improvements demonstrated that the banking sector had emerged stronger from the challenges of recent years, but stressed that the gains should translate into stronger risk management, sustainable business models and greater support for productive economic activities.
Business models
Dr Asiama announced that BoG would conduct a fresh review of the viability and long-term sustainability of banks’ business models in 2027.
He said the exercise would build on vulnerabilities identified during the comprehensive thematic review conducted in 2025, which had been shared with respective banks and followed by engagements with their boards and senior management.
“The Bank of Ghana intends a second round of business model analysis next year,” the Governor emphasised.
Dr Asiama further said that BoG was also developing a directive to regulate the use of artificial intelligence (AI) in the financial sector as banks increasingly adopt the technology to improve credit assessment, fraud detection, customer service and risk management.
He added that the central bank would also conduct thematic reviews of banks’ implementation of the revised Cyber and Information Security Directive to strengthen operational resilience.
