Copyright © Stears 2024
Thirteen banks have achieved recapitalization goals following Ghana’s Domestic Debt Exchange Programme (DDEP), positioning them to meet the 13% Capital Adequacy Ratio (CAR) threshold by end-2025, the IMF confirmed.
However, one state-owned bank and several others face significant delays due to stalled shareholder funding, high non-performing loans (NPLs), and inadequate credit impairment provisioning.
The Bank of Ghana has intensified supervision of lagging institutions, enforcing corrective measures while awaiting parliamentary approval for World Bank-supported Ghana Financial Sector Stability Fund (GFSF) injections.
Despite a slight NPL ratio decline from 26.7% (Q1 2024) to 22.6% (year-end) levels remain critically elevated. Regulators urge enhanced risk management and stricter loan classification.
Specialized deposit-taking institutions (SDIs), vital for financial inclusion, continue struggling with undercapitalization and legacy issues.
The central bank advances Basel II/III reforms and will phase out all post-DDEP regulatory reliefs by December 2025. The IMF acknowledged stability efforts but emphasized “sustained focus” on resolving credit quality and structural weaknesses for durable recovery.