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. Apexnewsgh reports
This move comes amid stronger-than-expected economic growth and an overall improvement in macroeconomic conditions, which have positively impacted the banking industry.
According to the BoG’s January 2025 Monetary Policy Report, the central bank will intensify supervisory measures to address the high Non-Performing Loans (NPLs) ratio, a significant risk to the industry’s stability. Improved domestic macroeconomic conditions are expected to enhance debt repayment capacities, reducing bad loans in the sector.
Private sector credit growth is also recovering, gradually returning to pre-2022 levels following the economic downturn.
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%, a significant improvement from the 10.2% contraction recorded in the same period the previous year.
Source: Apexnewsgh.com