The stress tests conducted by the Bank of Ghana on banks in the first-half of the year indicated that the banking sector appears resilient to adverse macroeconomic developments
This is given the current strong capital positions of the banks which increased by 48.5% to GH¢48.0 billion in the first-half of 2025
The stress tests assessed the implications of macroeconomic developments in the outlook for the solvency conditions of the banking sector.
The report pointed out that a deterioration in macroeconomic conditions could negatively impact asset quality and increase operational costs, but these would be offset by gains from net interest income.
It alluded that the macro-prudential assessment of the banking sector suggests positive macroeconomic developments have supported the banking sector’s performance and moderated systemic risk in half-year 2025.
“The Bank’s [BoG’s] stress test results suggest that the banking sector’s resilience to shocks has improved due to profit retention, capital injections, adequate liquidity, and moderation in the build-up of new non-performing loans”.
However, the report warned that debt servicing remains a challenge for both the corporate and household sectors.
“It is expected that the ongoing macroeconomic recovery, restructuring of loans to eligible borrowers, and implementation of measures outlined in the Bank of Ghana’s Regulatory Notice to banks on reducing NPLs [Non-Performing Loans] will help address this challenge.
In the near term, the report mentioned that sustaining the macroeconomic gains would provide the impetus for a stronger recovery in the banking sector’s intermediation capacity.
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