Ghana’s banking sector has undergone a wholesale transformation since 2017. An economic downturn beginning in 2014, combined with weak regulatory oversight and poor lending practices, left the country’s banks in an extremely vulnerable position, with worrying levels of non-performing loans (NPLs) across the sector.
However, while asset quality remains a concern in 2020, the country’s surviving banks began the year in a far stronger position, with profitability and NPL ratios posting significant improvements in 2019. And while the full impact of the coronavirus pandemic on lenders is yet to play out, the central bank, Bank of Ghana, has been proactive in trying to protect the sector through easing regulatory requirements for the short term.
