Confidence within Ghana’s banking sector is on an upward trajectory, as the Bank of Ghana’s (BoG) latest Systemic Risk Survey (SRS) indicates that an overwhelming 82.6% of respondents expect the country’s financial system to remain stable over the next year.
The July 2025 survey, which follows the January 2025 edition, revealed a marked improvement in banks’ perception of financial risks, driven largely by positive sentiments regarding liquidity, solvency, and macroeconomic stability.
The SRS is conducted twice annually to assess and monitor the perceptions of banks and other financial institutions about the potential risks to Ghana’s financial stability. The findings from the July survey show a clear moderation in the perceived likelihood of major risk factors materializing, suggesting that the financial landscape is stabilizing following years of economic volatility and post-debt restructuring adjustments.
Liquidity and Solvency Drive Positive Sentiment
The BoG attributed this newfound optimism to banks’ improving liquidity and solvency conditions. Over the past year, most banks have made significant strides in recapitalizing their balance sheets and aligning with regulatory standards, following the shocks of the domestic debt exchange programme (DDEP) and global economic headwinds.
Liquidity buffers have strengthened, aided by prudent asset-liability management and robust deposit mobilization. Similarly, solvency indicators such as the Capital Adequacy Ratio (CAR) have improved, supported by higher profitability levels and a gradual rebound in credit quality. These positive trends have reinforced confidence in the sector’s resilience and its ability to absorb potential shocks in the near term.
“The July 2025 survey findings show that banks generally perceive the financial system as stable and resilient,” the report noted. “This is underpinned by improved macroeconomic conditions, easing inflationary pressures, and sustained monetary policy interventions by the Bank of Ghana.”
Risk Perceptions Decline Across Key Areas
The BoG’s SRS further revealed that perceptions of macroeconomic and financial market risks have declined since the January 2025 survey. Factors such as inflation volatility, exchange rate pressures, and fiscal imbalances — which previously dominated concerns — have eased due to ongoing macroeconomic stabilization efforts.
Respondents noted that the likelihood and severity of systemic financial risks have moderated over time. This moderation is attributed to improved investor confidence, reduced non-performing loans (NPLs), and enhanced risk management practices within the banking sector.
While domestic risk factors are seen as declining, the survey highlighted that external shocks continue to weigh on sentiment. Specifically, global economic uncertainties, geopolitical tensions, and technological disruptions remain areas of caution for Ghanaian banks.
Despite the overall optimism, banks remain wary of the evolving global environment. Respondents pointed to the U.S. trade tariff war, ongoing instability in the Middle East, and the Russia-Ukraine conflict as key external threats that could disrupt global trade and financial flows. These geopolitical factors, they warned, could slow down economic growth in major economies, indirectly affecting Ghana through reduced exports, lower foreign direct investment, and currency fluctuations.
Furthermore, the rapid advancement of artificial intelligence (AI) and digital transformation in the financial sector presents both opportunities and challenges. Increased competition within the technology and fintech space is reshaping how banks operate, creating new operational and cybersecurity risks.
“While the pace of technological innovation enhances service delivery and efficiency, it also introduces unknown vulnerabilities,” the BoG report cautioned. “Continuous investment in digital infrastructure and cybersecurity is therefore essential to safeguard financial stability.”
Systemic Risk Survey: A Tool for Forward-Looking Stability
The Systemic Risk Survey remains a critical component of the BoG’s macroprudential oversight framework. Conducted biannually, the survey gathers insights from senior executives across the financial sector to identify emerging threats and vulnerabilities. The forward-looking nature of the survey helps policymakers anticipate potential risks and tailor regulatory responses accordingly.
By tracking perceptions of systemic risk, the BoG can design proactive interventions to mitigate potential shocks and safeguard the integrity of Ghana’s financial system. The July 2025 results underscore the importance of this mechanism in reinforcing transparency and confidence among market participants.
The Bank of Ghana has reaffirmed its commitment to maintaining a sound, stable, and resilient financial system. Through prudent monetary policy, rigorous supervision, and enhanced risk management regulations, the central bank continues to ensure that the financial sector remains robust in the face of both domestic and external shocks.
The BoG’s interventions, including the adoption of digital regulatory frameworks and support for fintech innovation, have contributed to improving operational resilience within the banking sector. At the same time, sustained efforts to strengthen governance, transparency, and risk disclosure are fostering greater confidence among investors and depositors.
Looking ahead to 2026, Ghana’s banking sector appears poised for sustained growth and stability. The combination of improving macroeconomic fundamentals, stronger balance sheets, and enhanced risk governance provides a solid foundation for continued resilience.
While challenges remain—particularly from global market uncertainties and technological disruptions—the overwhelming optimism expressed by banks reflects renewed confidence in the direction of Ghana’s financial sector.
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