Liquidity in the banking sector improved in 2025 on the back of increased cash and short-term investments.

According to the Bank of Ghana, liquid assets to total deposits increased to 96.3% at the end of December 2025 from 92.5% during the same period in 2024.

Liquid assets to volatile funds also increased to 151.8% from 139.5 percent over the same comparative period.

Solvency

The banking industry’s solvency position also strengthened in 2025.

At the end of December 2025, the Capital Adequacy Ratio (CAR) was 17.5% compared to 14.0% at the end of December 2024, above the 13% prudential minimum.

The enhancement in CAR was primarily due to capital injections and increased profits.

Asset Quality

The Bank of Ghana also said that the banking industry’s asset quality improved.

The NPL ratio declined to 18.9% at the end of December 2025 from 21.8% at the end of December 2024.

This was due to growth in the total loan book, write-offs of bad loans, and slower accumulation of new NPLs relative to overall credit expansion.

Notwithstanding the improvement in the NPL ratio, it expressed worry about the elevated credit risks.