Dr. Johnson Pandit Asiama
A total of GH¢1.64 billion loans given in 2025, has been written off by banks in the country, according to the January 2026, Banking Developments Report.
According to the Report, the asset quality risks of banks remained elevated in December 2025, although the industry’s Non-Performing Loans (NPL) ratio declined to 18.9% in December 2025, from 21.8% in December 2024.
It noted, “The industry’s Non-Performing Loans (NPL) ratio also improved in 2025 on account of a higher growth in loans and advances relative to the growth in NPL stock. Generally, the outlook for the banking sector remains stable, contingent on banks’ adherence to recapitalisation plans, and implementation of the new NPL regulatory guidelines introduced by the Bank of Ghana”.
It stated that Gross loans and advances grew by 16.2 percent to GH¢111.0 billion at the end-December 2025 from 24.1 percent in December 2024 while Growth in net loans and advances (gross loans adjusted for provisions and interest in suspense) also moderated to 19.3 percent from 21.0 percent over the same review period.
“Deposits remained the main source of funding for the banking sector, growing by 17.8 percent to GH¢325.3 billion in December 2025 from GH¢276.2 billion in December 2024, driven mainly by increases in deposits from domestic sources,” parts of the report stated.
The report also noted that the industry’s shareholders’ funds position (comprising paid-up capital and reserves) continued to improve on account of the strong profit outturn and some recapitalisation efforts of banks.
It indicated that the Non-Performing Loan stock (NPL), however, increased by 0.8% to GH¢21.0 billion in December 2025 compared with a growth of 31.4% recorded in December 2024.
The decomposition of the NPL showed that the private sector accounted for the most non-performing loans, due to its dominant holdings in total credit.
Generally, the outlook for the banking sector remains stable, contingent on banks’ adherence to recapitalisation plans, and implementation of the new NPL regulatory guidelines introduced by Bank of Ghana.
The macro prudential risk assessment showed that risks generally moderated in December 2025.
By Ebenezer K. Amponsah