We will ensure banks with capital gaps adhere to committed recapitalisation plans – BoG

The Bank of Ghana has promised to ensure that banks with capital gaps adhere to their committed recapitalisation plans to shore up solvency.

This follows a stronger-than-projected growth and generally improved macroeconomic conditions, spilling over positively to the banking sector.

In its January 2025 Monetary Policy Report, it said supervisory activities will be intensified to ensure that banks continue to address the high Non-Performing Loans (NPLs) ratio, which poses potential risks to the stability of the industry.

It added that the improvement in domestic macroeconomic conditions is also expected to bolster debt servicing capabilities of corporate and household sectors, which would help mitigate further build-up of NPLs within the industry.

Meanwhile, the private sector credit growth continued to increase towards pre-2022 macroeconomic crisis levels, albeit slowly.

Nominal growth in the private sector credit increased to 26.3% in December 2024 from 10.7% recorded in the corresponding period of 2023.

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