Ghana’s banking sector is close to full recovery following years of stress triggered by the domestic debt restructuring programme, the International Monetary Fund (IMF) has said.

Speaking on PM Express Business Edition on Thursday, IMF Mission Chief Dr Ruben Atoyan said most banks have now been recapitalised and restored to regulatory compliance.

Responding to concerns about ongoing vulnerabilities in parts of the financial sector, Dr Atoyan said he was not certain about the specific institution referenced in the question but stressed the broader progress made under Ghana’s financial sector reforms.

“Let’s step back and look at what was an important objective for the financial sector reforms,” he said.

The remarks come as Ghana continues to implement post-crisis financial reforms aimed at stabilising the banking system after years of balance-sheet stress, regulatory tightening, and restructuring interventions.

Dr Atoyan explained that the domestic debt restructuring exercise had significantly weakened bank capital positions, leaving many institutions undercapitalised at the height of the crisis.

“The impact of domestic debt restructuring resulted in significant destruction of capital for the domestic banking system,” he noted.

According to him, this situation triggered a wide-ranging recapitalisation programme aimed at restoring the sector's health and aligning banks with prudential requirements.

“So many banks were undercapitalised,” he said.

Dr Atoyan disclosed that the authorities had made substantial progress in restoring capital adequacy across the banking industry under the IMF-supported programme.

“What the authorities have done has been quite successful during the program, bringing banks back to the full capital adequacy in line with prudential requirements, which has been achieved for almost all the banks,” he stated.

He added that only a small number of institutions remain to be fully addressed.

“For a couple of banks remaining,” he said, indicating that the process is not yet entirely complete.

Despite these outstanding cases, the IMF Mission Chief expressed confidence that the sector is on track to full recovery.

“We do expect that by the end of the program the banking sector will be robust,” he added.