Banking sector rebounds as assets hit GH¢465bn – BoG Report

Ghana’s banking sector is showing clear signs of recovery and renewed strength, with total industry assets rising significantly to GH¢465.4 billion as of February 2026, according to the latest March Monetary Policy Report released by the Bank of Ghana (BoG). The data reflects a sector that is gradually regaining stability after recent economic challenges, supported by improved financial conditions and stronger institutional resilience.

The report indicates that total assets recorded a year-on-year growth of 21 percent. While this represents a moderation compared to the more rapid expansion seen in the previous year, analysts view the current pace as healthier and more sustainable. The growth is largely attributed to increased domestic asset accumulation, improved liquidity conditions, and better balance sheet management by banks operating within the Ghanaian economy.

One of the most notable developments highlighted in the report is the growing dominance of domestic assets within the banking sector. Domestic assets now account for 93.8 percent of total industry assets, a significant increase from 88 percent recorded during the same period last year. This shift underscores a strategic repositioning by banks toward local markets, reducing reliance on external exposures and minimizing vulnerability to global financial shocks.

Investment activity emerged as a key driver of growth during the period under review. Total investments surged by an impressive 57.5 percent to reach GH¢192.8 billion. This sharp increase was largely fueled by a strong expansion in short-term financial instruments, which rose by 130.1 percent. The surge reflects improved yields in the money market as well as more proactive liquidity management strategies adopted by banks seeking to optimize returns while maintaining flexibility.

Deposits remain the backbone of the sector’s funding structure, continuing to provide a stable and reliable source of capital. Total deposits grew by 18 percent to GH¢338.5 billion, driven predominantly by domestic inflows. This upward trend is widely interpreted as a sign of renewed public confidence in the banking system, following reforms and policy measures aimed at strengthening financial sector stability.

In addition to asset and deposit growth, the sector’s capital base also recorded a substantial improvement. Shareholders’ funds increased by 44.1 percent to GH¢60.6 billion, supported by strong profitability levels and ongoing recapitalisation initiatives. This enhanced capital position provides banks with a stronger buffer against potential risks and positions them to better support lending and investment activities in the economy.

Despite these positive developments, credit growth experienced a slowdown during the period. Financial analysts suggest that this reflects a deliberate and cautious strategy by banks, with a stronger focus on maintaining asset quality and managing risk effectively in a still-recovering economic environment. Rather than aggressive lending, banks appear to be prioritizing sustainability and long-term stability.

Overall, the data from the Bank of Ghana presents a banking sector that is not only expanding but doing so on firmer and more resilient foundations. With improved capitalization, stronger domestic focus, and growing public trust, the sector is increasingly well-positioned to play a critical role in supporting Ghana’s broader economic recovery and future growth trajectory.