Omanghana
The Bank of Ghana (BoG) has announced stricter financial sector oversight measures after total industry assets surged by 23.3% to reach GH¢647.25 billion.
The figures were disclosed on May 18, 2026, during the inaugural launch of the annual Financial Stability Review organized by the Financial Stability Council (FSC).
Speaking at the event, Matilda Asante-Asiedu stated that the sector’s total asset value now represents 45.1% of Ghana’s Gross Domestic Product (GDP), highlighting the growing scale and systemic importance of the country’s financial industry.
The expansion comes alongside stronger economic performance, with Ghana’s real GDP growth accelerating to 6.0% amid improving macroeconomic conditions.
Regulators attributed the sharp growth in financial sector assets to renewed market confidence following years of economic stress linked to debt restructuring and inflationary pressures.
According to the BoG, improved macroeconomic stability has strengthened depositor confidence and supported recovery across key financial institutions.
The central bank also noted that commercial banks have significantly improved their profitability and solvency positions across the country’s four major financial sectors, supported by stronger capital buffers and improved liquidity management.
In addition, banks continued to maintain substantial holdings of government securities and financial instruments, which contributed to balance sheet expansion during the review period.
Under the theme “From Stress to Stability: Staying on Course,” the BoG and FSC announced a series of new regulatory interventions aimed at safeguarding financial system recovery and minimizing emerging risks.
One of the major reforms is the introduction of a Conglomerate Supervision Framework designed to establish unified oversight across banking, insurance, and capital market institutions operating under the same corporate groups. Regulators say the framework is intended to eliminate regulatory arbitrage and improve group-wide risk monitoring.
The FSC also revealed that it has established a dedicated risk-monitoring framework for virtual assets following the passage of the Virtual Asset Services Providers Act. The initiative will track cryptocurrency-related exposure within the formal banking system and assess potential systemic risks linked to digital financial products.
As part of tighter prudential enforcement, the BoG announced stricter limits on Non-Performing Loan (NPL) ratios within the banking sector.
Under the revised guidelines, banks are expected to maintain NPL ratios below 10%. Financial institutions whose NPL ratios exceed 15% will face immediate restrictions, including bans on the payment of dividends and executive bonuses.
The central bank further disclosed that commercial banks will no longer be allowed to outsource strategic operational functions such as credit decision-making, compliance monitoring, internal auditing, and risk management processes.
According to regulators, the restrictions are intended to strengthen institutional accountability, preserve operational integrity, and reduce governance vulnerabilities within the financial system.
The latest measures form part of Ghana’s broader financial sector stabilization agenda as authorities seek to consolidate post-crisis recovery gains while preparing the industry for emerging risks tied to digital finance, corporate interconnectedness, and asset quality pressures.
Source: Omanghana
