Despite improvement in asset quality, the Bank of Ghana says the Non-Performing Loan (NPL) ratio remains a key risk to the banking sector.

The NPL ratio declined to 18.7% in February 2026 from 22.6% a year earlier. This was driven by a pickup in bank credit and a contraction in the NPL stock.

But many analysts and market watchers believe that the NPL is still high.

Meanwhile, the banking sector performance improved in February 2026.

Total assets increased supported by domestic deposits, domestic borrowings, and shareholders’ funds.

The asset growth was mainly driven by investments, which rose by 57.5%, compared to 8.6% growth in February 2025.

On the other hand, the financial soundness indicators in terms of profitability, liquidity, solvency, asset quality, and efficiency, all improved over the period.