BY ISSAH OLEGOR
THE banking sector has recorded significant growth in total assets, reaching GH¢500.20 billion at the end of August 2026, as the Bank of Ghana (BoG) reports improvements in capital adequacy and asset quality following years of economic challenges and financial sector reforms.
Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, announced that total banking sector assets had increased by 20.47 per cent from GH¢415.20 billion recorded in August 2025, reflecting improvements in macroeconomic conditions and the impact of regulatory and supervisory measures introduced to strengthen the financial system.
Speaking at the 43rd Annual General Meeting of the Ghana Association of Banks in Accra on Thursday, October 8, 2026, Dr Asiama said the latest indicators pointed to a stronger banking sector, although he cautioned that financial institutions must continue to improve their resilience and risk management practices to withstand future economic shocks.
The growth in banking assets comes against the backdrop of significant financial sector difficulties in previous years, particularly the domestic economic crisis and the Domestic Debt Exchange Programme (DDEP), which resulted in substantial financial impairments for banks holding government securities.
According to the Governor, the sector has since made considerable progress in restoring capital positions and meeting regulatory requirements, with all 23 banks operating in Ghana now compliant with the applicable minimum capital requirements.
Dr Asiama disclosed that the banking sector’s Capital Adequacy Ratio (CAR) had improved to 19.10 per cent in August 2026, compared with 18.28 per cent during the same period in 2025. The ratio, which measures a bank’s capital relative to its risk-weighted assets, stood comfortably above the regulatory minimum of 13 per cent.
The improvement indicates that the banking sector has strengthened its capital buffers, providing financial institutions with greater capacity to absorb potential losses arising from lending activities and other risks.
The Governor explained that the achievement followed capital restoration efforts involving banks, shareholders, investors, the government and the central bank.
He recalled that 13 banks had breached regulatory capital requirements in their audited financial statements for 2022, reflecting the financial pressures that emerged during the country’s economic crisis and the associated impairments from the DDEP.
However, subsequent interventions and capital restoration efforts have helped return all 23 banks to compliance with the applicable regulatory requirements.
Despite the progress, Dr Asiama stressed that meeting minimum capital requirements alone would not guarantee the long-term stability of individual banks or the wider financial system.
He urged banks to strengthen their business models, improve risk management and build the capacity to withstand future economic shocks rather than rely solely on stronger balance sheets.
