Ghana: A Banking & Finance Overview

Ghana’s banking and finance sector enters 2026 in a markedly more stable macroeconomic environment than it has experienced over the last three years. Following sovereign debt restructuring and a period marked by elevated inflation, exchange rate volatility and regulatory forbearance, macroeconomic conditions improved significantly during 2025. Inflation has returned to single digits, fiscal consolidation has advanced, external reserves have strengthened, and the cedi has stabilised. Against that background, the regulatory focus has shifted from crisis management to prudential normalisation, closer supervisory oversight and regulation of a rapidly evolving digital financial services landscape.

The improvement in the macroeconomic environment during 2025 was significant. Real GDP expanded at an annual rate of 6.1% during the first three quarters of the year, compared with 5.7% over the corresponding period in 2024, while non-oil GDP grew by 7.5% in the first three quarters of 2025, driven mainly by services and agriculture, compared with 5.7% over the same period in 2024. The Bank of Ghana’s Composite Index of Economic Activity also recorded 8.6% growth through Q3 2025, reflecting stronger trade activity, industrial production and private sector credit conditions.

Headline inflation declined further, from 5.4% in December 2025 to 3.3% in February 2026. By March 2026, the fiscal position had improved significantly, with the overall deficit narrowing to 1% of GDP and the primary balance moving into a surplus of 2.6% of GDP. Public debt also declined to 45.5% of GDP, from 63.1% a year earlier.

Ghana’s external position strengthened considerably during the last year. The current account recorded a surplus of USD9.1 billion as at the end of December 2025, while gross international reserves increased to USD14.8 billion, equivalent to 5.7 months of import cover. The cedi also appreciated sharply, gaining 40.7% against the US dollar over the course of the year, and remained relatively stable in Q1 of 2026. In March 2026, the Monetary Policy Committee reduced the Monetary Policy Rate by 150 basis points to 14%, reflecting the marked improvement in macroeconomic conditions and a more stable inflation outlook.

Banking Sector Developments

The improvement in the macroeconomic environment was also reflected in the performance of the banking sector. During 2025, banks’ total assets increased, funded mainly by growth in domestic deposits, domestic borrowings and shareholders’ funds, with much of the increase reflected in higher investment holdings. There were also signs of a gradual improvement in private sector lending, supported by lower average bank lending rates and a more stable macroeconomic environment. The appreciation of the cedi during the year also helped to stabilise banks’ balance sheets by easing foreign currency valuation pressures and reducing volatility associated with their foreign currency positions.

As macroeconomic conditions have stabilised, the Bank of Ghana has moved progressively away from the temporary relief measures introduced in the aftermath of the Domestic Debt Exchange Programme. Banks are expected to comply fully with restored capital adequacy and provisioning requirements, and supervisory attention has returned to core prudential indicators, including capital adequacy, liquidity management, large exposure limits and governance standards. Institutions that fail to meet the applicable requirements may be subject to restrictions on dividend payments, balance sheet growth or new product approvals.

Overall, the banking sector remains solvent and profitable, however asset quality continues to attract supervisory attention. The Non-Performing Loan ratio declined to 18.7% in February 2026 from 22.6% a year earlier. Ongoing efforts by the Bank of Ghana and the banks themselves to resolve legacy impaired assets and strengthen credit underwriting standards should support further improvement.

Microfinance and Specialised Deposit-Taking Institutions

The Bank of Ghana has introduced a revised framework for the microfinance and specialised deposit-taking subsector, replacing the previous tier-based structure with four categories of institutions, Microfinance Banks, Community Banks, Credit Unions and Last-Mile Providers. The framework also introduces revised capital thresholds and requires existing institutions to adopt a transition pathway, whether through recapitalisation, consolidation, transfer of assets and liabilities, or orderly exit. Institutions are required to notify the Bank of Ghana of their chosen transition option by 30 June 2026. The reforms are aimed at addressing longstanding structural and operational weaknesses in the subsector, particularly in relation to capital, governance and operational efficiency, and at strengthening supervision and depositor protection.

Payment Service Providers and Digital Credit

The fintech sector also continues to develop, particularly in relation to payment service providers and other operators regulated under the Payment Systems and Services Act. Over the past year, the Bank of Ghana has introduced a number of measures aimed at strengthening oversight of this segment, including Corporate Governance Guidelines for Payment Service Providers, which apply across the various licence categories under Act 987. Additionally, there has been increased engagement on the draft Open Banking Directive to facilitate the sharing of customer-consented financial data among regulated financial institutions.

The Bank has also introduced a formal licensing and operating regime for Digital Credit Services Providers. Under the 2025 Directive, any corporate entity intending to carry on business as a Digital Credit Services Provider must obtain a licence from the Bank of Ghana. The licensing framework includes a minimum capital requirement of GHS2 million and requires applications to be made through the Bank’s ORASS platform. The Directive also imposes requirements relating to ownership, governance, data protection, outsourcing, technology systems, business continuity, regulatory reporting and supervisory access.

Inward remittance services have also come under closer regulation. The Bank of Ghana first updated its guidelines for inward remittance services provided by payment service providers in partnership with money transfer operators and has since issued separate Guidelines for the Registration and Operations of International Money Transfer Operators in Ghana. Those Guidelines establish a registration regime for IMTOs and set out operational and compliance requirements for their activities in Ghana, including their partnerships with banks and payment service providers.

Capital Markets, Insurance and Pensions

In the capital markets space, the Securities and Exchange Commission continues to supervise licensed intermediaries and, under recent reforms, certain digital asset activities. The Virtual Asset Service Providers Act, passed in December 2025, establishes a formal regulatory framework for digital asset service providers, including licensing requirements and obligations relating to anti-money laundering compliance, governance, consumer protection and cybersecurity. Regulatory responsibility is shared between the Bank of Ghana and the Securities and Exchange Commission, depending on the nature of the activity. The National Insurance Commission and the National Pensions Regulatory Authority also continue to strengthen prudential and governance oversight within the insurance and pensions sectors. In both sectors, supervisory focus remains on capital adequacy, risk management, investment compliance and governance standards.

Data Protection and Cybersecurity Regulation

Proposed amendments to Ghana’s data protection framework are expected to strengthen enforcement mechanisms, clarify obligations relating to breach notification and cross-border data transfers, and increase administrative penalties. There is also a growing regulatory focus on data sovereignty, particularly where financial institutions rely on offshore data storage or cloud-based processing arrangements. Cybersecurity and operational resilience have, accordingly, become more prominent areas of supervisory attention. Institutions are expected to maintain appropriate information security frameworks, implement incident reporting protocols and manage third-party technology risks with effective board and senior management oversight.

Opportunities, Challenges and Outlook

Ghana’s banking and finance sector now appears to be moving into a more settled phase. A more stable macroeconomic environment, lower inflation and easing interest rates should support a gradual recovery in credit growth and broader financial intermediation. At the same time, institutions continue to face familiar constraints, including the need to strengthen capital positions, address impaired assets and respond to rising regulatory expectations, particularly in relation to governance, data protection and cybersecurity.

The continued expansion of digital financial services also creates opportunities for product development and deeper financial inclusion, but it brings with it additional operational and compliance risks. Overall, the sector appears set for gradual recovery and consolidation within a more structured and closely supervised regulatory environment.