The Bank of Ghana (BoG) has assured that it will ensure banks with capital shortfalls comply with their recapitalisation commitments to strengthen solvency in the sector.

This comes amid stronger-than-expected economic growth and an overall improvement in macroeconomic conditions, which have had a positive impact on the banking industry.

In its January 2025 Monetary Policy Report, the central bank stated that supervisory measures will be intensified to address the high Non-Performing Loans (NPLs) ratio, which remains a risk to the industry’s stability.

It further noted that improved domestic macroeconomic conditions are expected to enhance the debt repayment capacities of businesses and households, thereby helping to reduce the accumulation of bad loans in the banking sector.

Meanwhile, private sector credit growth is gradually returning to pre-2022 levels following the economic downturn.

According to the report, nominal private sector credit grew by 26.3% in December 2024, up from 10.7% in December 2023.

In real terms, credit to the private sector increased by 2.0%, compared to a 10.2% contraction recorded in the same period the previous year.