Despite improvements in the banking sector’s performance, “elevated credit risks pose threats to the recovery process,” Bank of Ghana Governor Ernest Addison has warned.

Speaking at the annual general meeting of the Ghana Association of Banks in Accra on 19 September 2024, Dr Addison highlighted that the industry’s non-performing loans ratio was 24.1 per cent in June 2024, up from 18.7 per cent in June 2023.

“The consistent rebound in profits, adherence to recapitalisation plans, and enforcement of strict credit underwriting standards are expected to help ensure that banks remain on the path to full recovery and resilience,” he added.

He mentioned that the “enhanced performance of the banking sector, amid the obvious challenges, was made possible in part through the unrelenting partnership of GAB with the Bank, especially during the difficult DDEP process.”

He urged the association to reflect on the recent developments in the banking sector, strategise to consolidate the gains made and aim to sustain confidence in the industry for economic growth.