The proportion of troubled loans within Ghana’s banking industry declined to 18.9 percent in December 2025, down from 21.8 percent a year earlier, though the level remains relatively high.
The Bank of Ghana attributed the improvement to continued efforts to clean up legacy credit exposures, stricter loan approval practices, and measures targeting intentional loan defaults. The central bank indicated that these initiatives are expected to further strengthen balance sheet quality over time.
It also noted that a more accommodative monetary policy stance is likely to ease lending conditions and enhance the role of banks in supporting economic activity in the period ahead.
According to the regulator, the banking industry delivered a solid performance in 2025, with balance sheets expanding on the back of rising local deposits, increased domestic funding, and stronger capital positions.
The growth in balance sheets was largely channelled into higher investment holdings. Recent prudential indicators further showed that financial institutions remained well-capitalised, profitable, and operationally sound.
Meanwhile, financial institutions removed GH¢1.39 billion in impaired exposures from their books during the first ten months of 2025, marking a 56.7 percent jump compared with the marginal rise recorded in October 2024.
Data from domestic banks’ income statements revealed that the impairment charges comprised provisions for credit losses, depreciation, and other related items.
In comparison, the government cleared GH¢3.22 billion in liabilities in October 2024, according to official records.