Ghana’s banking sector has returned to full prudential standards after successfully rebuilding capital positions throughout 2025, with reported capital adequacy ratios converging at the same level whether temporary regulatory reliefs are included or excluded.
The Bank of Ghana (BoG) reported that the capital adequacy ratio (CAR) for the banking sector reached 17.5 percent in December 2025, the same level with or without temporary relief measures. In December 2024, the CAR including reliefs stood at 14.0 percent, while the equivalent ratio without reliefs was 11.3 percent.
The convergence follows the phasing out of temporary regulatory reliefs introduced in 2023 after the Domestic Debt Exchange Programme (DDEP). The central bank had reduced the Capital Conservation Buffer from 3 percent to zero, lowering the effective minimum CAR from 13 percent to 10 percent to help banks absorb losses from bond adjustments under the DDEP.
According to the central bank, 21 of 23 licensed commercial banks met the fully loaded CAR requirement by December 2025, with the remaining two banks given until March 31, 2026 to reach full compliance.
Throughout 2025, capital adequacy ratios climbed steadily, peaking at 20.3 percent in May under the standard measure before moderating in the second half of the year. The CAR without reliefs followed a similar pattern, rising from 11.3 percent in December 2024 to 17.5 percent by December 2025, reflecting underlying capital strength in the sector.
The return to full prudential requirements represents a significant milestone for financial sector stability in Ghana, as banks now operate without reliance on temporary forbearance measures introduced during the DDEP period.
The DDEP was launched in December 2022 and concluded in February 2023, restructuring approximately 137 billion cedis of domestic bonds. The programme imposed substantial losses on the banking sector in 2023 due to high exposure to government securities, prompting regulatory intervention to cushion the impact.
Strong capital buffers are expected to enable banks to absorb potential shocks, sustain lending activity, and support economic growth. The sector’s resilience has been demonstrated through the successful rebuilding of capital positions as regulatory reliefs have been phased out.
Banks that remain undercapitalized must implement credible recapitalization plans, with non compliance potentially triggering heightened supervisory measures, including restrictions on dividends, bonuses, and balance sheet expansion.
The banking sector is now required to operate with stronger capital discipline, sharper risk pricing, and renewed focus on asset quality as it transitions to normal operating conditions without regulatory forbearance.
