BoG: We will make sure banks with capital shortages follow their pledged recapitalization plans.
To support solvency, the Bank of Ghana(BoG) has pledged to make sure that banks with capital shortages follow their planned recapitalization programs.
This comes after macroeconomic conditions generally improved and growth was better than anticipated, which had a beneficial impact on the banking industry.
It stated in its January 2025 Monetary Policy Report that regulatory efforts will be stepped up to make sure banks keep addressing the high ratio of non-performing loans (NPLs), which could jeopardize the industry’s stability.
It further stated that the strengthening of corporate and consumer debt servicing capacities is anticipated as a result of the improvement in domestic macroeconomic conditions, which would assist prevent the industry’s NPLs from growing further.
In the meantime, however slowly, the rise in private sector credit kept moving closer to pre-2022 macroeconomic crisis levels.
The nominal growth rate for private sector loans rose from 10.7% in the same time in 2023 to 26.3% in December 2024.
Compared to the 10.2% decrease in credit to the private sector during the same time last year, real credit to the private sector grew by 2.0%.
