The banking industry's Non-Performing Loans (NPLs) ratio increased to 24.1% in June 2024, up from 18.7% in June 2023.

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Despite improvements in the banking sector's performance, the Bank of Ghana notes that high credit risk threatens the sector's recovery process.

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However, the Bank believes that the consistent profit recovery, adherence to recapitalization plans, and enforcement of stringent credit underwriting standards will help banks stay on the path to full recovery and resilience.

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In its Monetary Policy release, the Bank stated that the banking sector's performance in the first half of the year indicates continued recovery from the impact of the Domestic Debt Exchange Programme.

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Total banking sector assets rose by 33.3% to GH¢323.1 billion by the end of June 2024, compared to a 21.2% growth at the end of June 2023.

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Profitability, liquidity, and efficiency indicators also showed improvement during this period.

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The Capital Adequacy Ratio (CAR), adjusted for reliefs, remained steady at 14.3% between June 2023 and June 2024.

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Without reliefs, the Central Bank reported the CAR at 10.6% in June 2024, up from 7.4% in June 2023.

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