By Ashiadey Dotse
Ghana’s banking sector recorded strong growth and improved stability in the first two months of 2026, according to the Bank of Ghana’s March Monetary Policy Report.
The report shows that banks performed well, supported by steady growth in total assets and customer deposits. The sector remained profitable, with both profit before tax and profit after tax higher than figures recorded during the same period in 2025.
Total assets of the banking industry grew by 21 percent year-on-year to GH¢465.4 billion by the end of February 2026. This growth was mainly funded by deposits, which increased by 18 percent to GH¢338.5 billion.
The report also noted that the sector’s financial health improved in key areas such as solvency, efficiency, and asset quality. The capital adequacy ratio, which measures banks’ strength, rose to 18.6 percent, well above the minimum requirement of 13 percent.
Non-performing loans (NPLs), which are loans not being repaid on time, also declined. The NPL ratio dropped to 18.4 percent from 22.6 percent a year earlier, indicating better loan recovery and improved credit management by banks.
However, credit growth slowed during the period. Loans and advances increased by 15.6 percent to GH¢108.2 billion, lower than the growth recorded in 2025. Despite this, lending to the private sector remained strong, accounting for about 96 percent of total credit.
The services sector received the largest share of loans, followed by commerce and finance, and manufacturing.
Banks also increased their investments, especially in short-term financial instruments, taking advantage of higher money market rates. Investments grew sharply by 57.5 percent to GH¢192.8 billion.
While the sector remained stable, the report highlighted some concerns. Core liquidity declined as banks reduced their cash holdings, although overall liquidity remained strong due to increased investments.
Profitability also showed mixed trends. Although total profits increased, key indicators such as return on equity and return on assets recorded slight declines.
Looking ahead, the Bank of Ghana expects the banking sector to remain stable. The outlook depends on banks continuing to follow strict lending rules and managing risks effectively.
The report added that credit to businesses and households is likely to increase in the coming months, especially as monetary policy eases, which could support economic growth across the country.
