Steps have been initiated by the government to recapitalise the central bank, with a bond already issued to support the process, according to the Governor of the Bank of Ghana, Johnson Pandit Asiama.

He explained that the government, as the majority shareholder of the central bank, is legally required to restore its capital base.

“Government has given us a bond to kick-start the recapitalisation process. Government is the main shareholder, and the law mandates the government to recapitalise the Bank of Ghana, and there is an Memoranda of Understanding to that effect,” he stated.

This recapitalisation drive comes after the impact of the Domestic Debt Exchange Programme, which resulted in losses on the central bank’s holdings of government securities and weakened its balance sheet. The programme was part of broader fiscal and monetary reforms aimed at stabilising the economy.

Dr Asiama noted that issuing the bond forms part of a coordinated strategy between the central bank and government to gradually rebuild capital buffers and maintain financial strength.

He assured that in spite of the setbacks, the central bank remains focused on its core responsibility of ensuring macroeconomic stability.

“We will continue to meet our mandate of price and exchange rate stability,” he emphasised.

He also indicated that recent policy decisions, including a 150 basis points reduction in the policy rate to 14 percent, signal increasing confidence in the country’s economic recovery.

According to him, declining inflationary pressures, relative stability in the exchange rate, and stronger external sector performance have created the conditions for such adjustments.

The Bank further reported gains within the financial sector, noting an increase in total industry assets and a decline in non-performing loans due to a reduction in impaired loan stock. However, lending to the private sector remains weak, underscoring the need for continued policy measures to boost credit growth.

Overall, the recapitalisation initiative is expected to strengthen the Bank of Ghana’s capacity to sustain recent economic progress, promote financial sector stability, and improve the effectiveness of monetary policy in supporting growth.

Last year, the Bank of Ghana assured that banks facing financial shortfalls will follow procedures to raise the needed funds to remain stable.

This came at a time when the economy had outperformed expectations, with broad gains delivering positive spillover effects to the banking sector.

In its January 2025 Monetary Policy Report, the central bank said it would closely monitor banks to ensure they address the issue of bad loans, which could threaten the stability of the industry.

The report also noted that better economic conditions should make it easier for businesses and households to repay their debts, helping to reduce the number of bad loans.

At the same time, loans to the private sector are gradually recovering to levels seen before the economic challenges of 2022.

The value of private sector loans grew by 26.3% in December 2024, compared to 10.7% growth in December 2023.

Adjusted for inflation, this represents a modest 2.0% increase, a significant improvement from the 10.2% decline recorded the previous year.

In 2025, banks invested more in treasury bills than in 2024. This is according to the Bank of Ghana's January 2026 Monetary Policy Report.

According to the BoG, its share increased from 40.3% in December 2024 to 62.3% in December 2025, whereas the share of long-term securities declined from 59.3% in December 2024 to 37.2% in December 2025, marking a 37.3% year-on-year decline.

This was in line with the growth moderation recorded during the reference period. The report also stressed that the share of equity investments remained negligible but increased marginally from 0.4% percent in December 2024 to 0.5% in December 2025.

Meanwhile, the share of deposits in banks’ liabilities and shareholders’ funds decreased to 72.8% in December 2025 from 75.1% in December 2024, reflecting the slowdown in deposit growth in 2025.

The increase in borrowings, however, translated into an increased share of 8.5% in December 2025 from 7.6% in December 2024.

The proportion of shareholders’ funds in banks’ total funding also improved to 13.1% in December 2025 from 10.8% a year earlier, while the share of other liabilities declined from 6.3% to 5.4% during the same comparative period.

Investor interest and confidence in government treasuries remain high as the treasury bill auction exceeds the target by over 60%.

In auction results posted by the Bank of Ghana, the government accepted GH¢12.8 billion in bids at the latest auction, above its GH¢9.8 billion target, although investors submitted bids worth GH¢15.9 billion.

The reports also show that the majority of investors preferred the 364-day (one-year) treasury bill, for which they offered about GH¢7.4 billion, making up nearly half of all the money investors offered.

Out of this amount, the government accepted just over GH¢5.0 billion.

Also, for the 182-day (six-month) treasury bill, investors offered about GH¢4.29 billion, and the government accepted almost all of it, around GH¢4.28 billion.

For the 91-day (three-month) bill, investors offered about GH¢4.1 billion, of which the government accepted about GH¢3.4 billion.

On the other hand, interest rates continued to rise at the longer end of the yield curve.

The yield on the 91-day bill remained at 11.19%.

That of the 182-day bill, however, went up to 12.66% from 12.64% the previous week.

Additionally, the yield on the 364-day bill increased by eight basis points to 13.06%.

Meanwhile, the iversubscription has been a trend in the last few months.Government saw another significant oversubscription in its primary T-bill auction, the Bank of Ghana (BoG) announced, following its August 1 auction last year.

This comes after demand surged 42.07 percent above the target.