The Bank of Ghana (BoG) says the Non-Performing Loan (NPL) ratio of banks improved to 18.9 per cent in December 2025, down from 21.8 per cent in 2024, although the level remains relatively elevated.
According to the Central Bank, ongoing policy measures aimed at resolving legacy loans, enforcing stricter credit underwriting standards, and tackling willful defaults are expected to further enhance asset quality in the banking sector.
The BoG also noted that the recent easing of the monetary policy rate is expected to support improved credit conditions and strengthen financial intermediation going forward.
Despite the elevated NPL levels, the Bank of Ghana said the banking sector recorded a strong performance in 2025. Total assets expanded during the year, largely driven by growth in domestic deposits, domestic borrowings, and shareholders’ funds.
The growth in assets was mainly reflected in a significant increase in investments. Latest financial soundness indicators further showed that the banking sector remained solvent, profitable, and efficient.
Meanwhile, banks wrote off GH¢1.39 billion as bad debt in the first 10 months of 2025, representing a 56.7 per cent increase compared to the level recorded in October 2024.
Data from the Domestic Money Banks Income Statement indicate that the total provisions comprised loan losses, depreciation, and other related charges.
In comparison, the Government of Ghana wrote off GH¢3.22 billion in October 2024, according to official figures.
