A stress test conducted by the Bank of Ghana on banks that hold restructured government bonds indicates that the banking sector appears resilient to shocks emanating from the repricing of such government instruments.

This is on the back of the declining trend in interest rates on the money markets.

Furthermore, the Central Bank said the improving strong capital positions of banks and the pre-emptive actions of banks to timely estimate and book required impairments also provided some cushion to their resilience.

The stress tests assessed at this round of Monetary Policy Committee (MPC) focused on the implications of revaluation of banks’ holding of the restructured government bonds at prevailing financial market conditions on the solvency conditions of the banking sector.

The assessment estimated the fair value of bonds from their respective prices on the Ghana Fixed Income Market and Bloomberg.

The estimated net present value (NPV) was compared to the book value, and where the fair value was lower than the book value, the difference was the required additional impairment to be booked; otherwise, no additional impairment booking is required.

The Bank of Ghana concluded that the banking sector’s performance in October 2025 reaffirmed its resilience amid evolving macro-financial conditions.

It added that a strong asset growth, primarily driven by investment holdings, reflects a cautious portfolio rebalancing strategy in response to credit risk considerations.

The financial soundness indicators also generally improved year-on-year, except for core liquidity, which it said warrants close monitoring given its potential implications for short-term funding stability.