Dr. Johnson Pandit Asiama, Governor of the Bank of Ghana (BoG), has affirmed that deposit money banks remain sound, profitable, and well capitalized. Speaking at the 127th Monetary Policy Committee press conference in Accra on November 26, 2025, he highlighted improvements in key financial soundness indicators, including solvency, profitability, asset quality, and operational efficiency over the past year.
He noted that the Non-Performing Loan (NPL) ratio fell to 19.5 per cent in October 2025, down from 22.7 per cent in October 2024. This improvement was driven by increased bank credit and a reduction in the stock of NPLs. Despite this progress, Dr. Asiama cautioned that credit risks remain high, emphasizing the need for ongoing policy efforts to recapitalize undercapitalized banks and fully implement new regulatory guidelines to further reduce NPLs and strengthen the banking sector.
The Monetary Policy Committee, considering improving macroeconomic conditions, took a decision reflecting optimism about inflation prospects. With inflation expected to decline significantly by the end of the year and foreign reserves providing exchange rate stability, the BoG projects inflation to remain stable around target levels through mid-2026.
Given the moderated risks to the inflation outlook and the current high real interest rates, the Committee voted by majority to reduce the Monetary Policy Rate by 350 basis points, lowering it to 18.0 percent to support recovery and growth.
Story by: Mercy Addai Turkson #ahotoronline.com