Central bank announced significant drop in Non-Performing Loans(NPLs), highlights economic gains

The Governor of the Bank of Ghana (BoG), Dr. Johnson Pandit Asiama, has announced a marked improvement in the health of the nation’s banking sector, citing a substantial reduction in the Non-Performing Loan (NPL) ratio. The ratio fell to 18.9 percent in December 2025, down from 21.8 percent recorded in 2024.

Speaking at the 128th Monetary Policy Committee (MPC) press conference on Wednesday, Dr. Asiama acknowledged the progress but cautioned that the 18.9% figure remains high. He expressed confidence that ongoing policy initiatives would lead to further improvements.

“Ongoing policy measures aimed at resolving legacy loans, enforcing strict credit underwriting standards, and addressing wilful defaults are expected to further improve asset quality,” the Governor stated.

The announcement forms part of a broader positive assessment of Ghana’s financial and external sectors for the year ending 2025. Dr. Asiama reported that the banking sector remained solvent, profitable, and efficient, with total assets growing primarily on the back of increased investments. This growth was fueled by rises in domestic deposits, borrowings, and shareholders’ funds.

On the external front, the Governor pointed to robust performance, with a provisional current account surplus of US$9.1 billion, a significant leap from the US$1.5 billion surplus in 2024. This was driven by strong gold export earnings, increased private transfers, and moderated services and income payments.

These factors, combined with high capital inflows, resulted in a balance of payments surplus of US$3.98 billion. Consequently, Ghana’s Gross International Reserves climbed to US$13.8 billion by end-December 2025, equivalent to 5.7 months of import cover. This represents a strong increase from the US$9.1 billion (4.1 months of import cover) held at the end of 2024.

Dr. Asiama directly linked this reserve accumulation to the stability of the local currency. The Ghana Cedi appreciated by 40.7 percent against the US dollar in 2025, a stark reversal from its 19.2 percent depreciation in 2024. The Governor attributed this strong performance to favourable global conditions, prudent monetary policy, effective liquidity management, and the significant buildup of reserves. The currency has remained relatively stable in the opening weeks of 2026.