S&P Global says Ghana’s banks’ Non-Performing Loan (NPL) ratio of 16.1% as of June 2026 is too high.
According to the ratings agency, the ratio reflects domestic debt exchange program, arrears owed to suppliers and contractors, and exchange rate and inflationary pressures on households and businesses in recent years.
It stated that credit risk in the banking system remains elevated, following years of macroeconomic instability, government default, and the debt restructuring.
The agency highlighted that after the 2022 domestic debt restructuring, 13 local banks required recapitalization.
However, the rating assessment pointed out that five, including one state-owned bank, are undercapitalised.
“Although most have met the recapitalization requirements, five of them (including a state-owned bank) are still undercapitalised.”
It stressed that the Bank of Ghana’s assertion that all banks have met the minimum capital requirement.
The agency anticipated that inflation will be contained compared with Ghana’s historical norm.
“The credibility and effectiveness of the country’s monetary policy are improving. After years of sizable fiscal deficit financing, the government appears to have put an end to monetary financing of the deficit. Nevertheless, we do not expect the low inflation seen at the start of 2026 to last; average inflation is more likely to be at the upper end of the Bank of Ghana’s 6% – 10% target, until 2029”, it concluded.
Source: MyJoyOnline
