All 23 Banks Now Meet Capital Requirements as BoG Marks Major Post‑DDEP Recovery Milestone

All 23 banks operating in Ghana have now met the Bank of Ghana’s regulatory capital requirements, completing a sector‑wide recovery process that began after the Domestic Debt Exchange Programme (DDEP), Governor Dr Johnson Pandit Asiama has announced.

Speaking at the 43rd Annual General Meeting of the Ghana Association of Banks and the launch of the sixth edition of the GH Bankers’ Voice Magazine in Accra on Thursday, October 8, 2026, Dr Asiama said the 2022 audited financial statements revealed that 13 banks had breached regulatory capital requirements due to the economic crisis and impairments from the DDEP.

“Through the collective efforts of banks, shareholders, investors, the Association, Government and the Bank of Ghana, all 23 banks have now met the regulatory capital requirements. This is a significant achievement,” he said.

Capital Restoration Is Only the First Step

Dr Asiama stressed that meeting regulatory capital was not the end of the journey. Banks must now maintain capital levels that reflect their risk profiles and build buffers strong enough to withstand future shocks.

He noted that the Bank of Ghana conducted a comprehensive thematic review of banks’ business models in 2025, identifying vulnerabilities that have since been shared with boards and senior management. A second round of Business Model Analysis will be undertaken next year.

Sector Performance Strengthens

The Governor highlighted significant improvements in the banking sector since 2025, supported by better macroeconomic conditions and ongoing regulatory reforms.

• Total assets grew by 20.47% to GH¢500.20 billion as of August 2026, up from GH¢415.20 billion a year earlier.
• The Capital Adequacy Ratio improved from 18.28% to 19.10%, well above the regulatory minimum of 13%.
• The Non‑Performing Loans (NPL) ratio declined sharply from 20.77% in August 2025 to 15.66% in August 2026.

Despite the progress, Dr Asiama cautioned that stronger balance sheets must translate into sustainable business models, robust risk management, and greater support for productive economic activity.

Reducing NPLs to 10% by December 2026

Dr Asiama reminded banks of the requirement to reduce their NPL ratios to 10% by December 2026, describing asset quality as one of the sector’s most critical vulnerabilities.

He said the Bank of Ghana’s Notice on Non‑Performing Loans, issued in August 2025, aims to strengthen governance around credit risk, set prudential limits, and enforce remedial actions for wilful defaulters.

Banks must improve underwriting standards, loan monitoring, restructuring practices, collateral management, write‑offs and recovery processes. A new Directive on Credit Risk Management is being prepared to complement the NPL Notice.

Liquidity, Stress Testing and Risk Culture

The Governor announced that the Liquidity Coverage Ratio Directive will soon be published, establishing prudential liquidity requirements and reinforcing liquidity risk‑management culture across the sector.

He said the Bank has enhanced its macroprudential stress‑testing framework, engaging banks on results from severe but plausible scenarios. These exercises are expected to inform capital planning, liquidity management, risk appetite and strategic decisions.

Digitalisation, Cybersecurity and AI Oversight

Cybersecurity, digital fraud, data protection, cloud computing and operational resilience are receiving heightened supervisory attention. Following the revised Cyber and Information Security Directive, the Bank will conduct thematic reviews to ensure compliance.

On artificial intelligence, Dr Asiama said a Directive on the Use of AI in the Financial Sector is being developed to promote responsible innovation while safeguarding governance, data quality, cybersecurity and consumer protection.

Building a Future‑Ready Banking Sector

Dr Asiama said the key question is no longer whether the sector has recovered from the DDEP‑induced crisis, but whether enough is being done to preserve the gains and build a banking system resilient to future shocks.

He emphasised that regulation alone cannot create resilience. Boards and management must cultivate strong risk cultures, sustainable business models and institutions capable of serving customers through both stability and stress.

“The ambition should be to build a banking sector strong enough to absorb shocks, innovative enough to adapt to change and capable of financing Ghana’s long‑term economic transformation,” he said.