Independent auditors KPMG have called on the Bank of Ghana (BoG) to improve transparency in its financial reporting, strengthen credit risk management, and maintain strict adherence to a phased recapitalisation plan, after the central bank posted a net loss of GH¢15.63 billion for the 2025 financial year.
KPMG, which took over as the BoG’s external auditor for the 2025 accounts, issued an unmodified audit opinion on the financial statements, approved by the BoG Board on April 29, 2026 and signed off on April 30. While the auditors confirmed the accounts were fairly presented in all material respects, they identified impairment on investment securities as a critical audit matter, noting that the Bank’s investments measured at amortised cost exceeded GH¢116 billion, with an expected credit loss allowance estimated at approximately GH¢17.26 billion.
KPMG recommended that the BoG clearly articulate the basis on which its accounts are prepared, particularly given that the law governing the Bank permits the use of accounting practices that differ from international standards. Clearer disclosures, the auditors said, would help stakeholders better understand the Bank’s true financial position and reduce the risk of misinterpretation.
On credit risk, the auditors called for greater caution in evaluating the likelihood of repayment on investments and loans, and emphasised the need for regular reviews of key estimates and assumptions to ensure that potential losses are identified and accounted for early.
The BoG recorded a negative equity of GH¢93.82 billion as at December 31, 2025, compared with GH¢58.62 billion in 2024, stemming mainly from the restructuring of domestic government securities under the Domestic Debt Exchange Programme (DDEP), which significantly impaired the value of the central bank’s securities portfolio.
While acknowledging that the BoG continues to operate despite this negative equity position, KPMG advised management to maintain transparency about the situation and to consistently assess the Bank’s ability to operate sustainably over the medium to long term.
On recapitalisation, the auditors stressed the importance of both the BoG and the government strictly honouring the agreed roadmap for restoring the Bank’s capital base. A Memorandum of Understanding signed on January 6, 2025 between the Ministry of Finance and the Bank outlines a phased recapitalisation programme spanning 2026 to 2032, under which the government will transfer financial instruments and cash to rebuild the Bank’s equity. The report projected that a return to positive net equity could be achieved by 2032.
KPMG also recommended stronger risk oversight mechanisms, including closer monitoring of market developments, liquidity levels, and foreign exchange exposures, supported by robust internal audit and risk management systems with active board-level supervision.
The auditors further urged the BoG to provide comprehensive disclosures on contingent liabilities, including ongoing litigation, guarantees, and other financial obligations. Contingent liabilities relating to pending legal suits against the Bank rose from GH¢107.65 million at the end of 2024 to GH¢477.96 million at December 31, 2025, an increase of more than 340 percent in a single year.
The BoG has maintained that despite the financial losses, it remains policy solvent and capable of executing its monetary policy mandate without direct government support, pointing to a sharp improvement in its policy solvency position from GH¢793.54 million in 2024 to GH¢5.50 billion in 2025.
