Ghana’s banking sector exhibited combined efficiency in 2024, characterised by sturdy asset development alongside restricted non-public credit score enlargement, based on the World Financial institution Group’s ninth Financial Replace on Ghana.
The June 2025 version of the report highlights that whereas elevated liquidity fuelled vital asset accumulation, a high-risk surroundings constrained lending to the non-public sector.
The World Financial institution’s evaluation notes that whereas banks efficiently grew their asset bases in 2024, this enlargement didn’t translate into proportional credit score to companies and people.
This was partly attributable to elevated non-performing mortgage (NPL) ratios, which signalled a cautious method by banks. In a high-risk lending surroundings, banks are inclined to choose holding liquid belongings or investing in low-risk authorities securities over offering credit score to the non-public sector.
Nonetheless, the report factors to a constructive flip within the first quarter of 2025.
“Within the first quarter of 2025, non-public credit score rebounded, pushed by renewed investor confidence and improved macroeconomic situations,” the World Financial institution states.
This rebound means that the federal government’s fiscal consolidation and the Financial institution of Ghana’s tight financial coverage are starting to revive confidence within the economic system.
The monetary sector’s efficiency in early 2025 is seen as a key indicator that Ghana is heading in the right direction in the direction of financial restoration.
A sustained improve in non-public credit score is important for enterprise enlargement, job creation, and total financial development.
The World Financial institution advises that to keep up this momentum, the federal government should proceed its reforms to cut back threat within the economic system, encouraging banks to channel extra funds into productive sectors.
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