The Governor of the Bank of Ghana (BoG), Dr. Johnson Pandit Asiama, has affirmed that deposit money banks in the country remain sound, profitable, and well-capitalised.

Addressing the 127th Monetary Policy Committee (MPC) press conference in Accra on Wednesday, November 26, Dr. Asiama highlighted improvements across key financial soundness indicators, including solvency, profitability, asset quality, and operational efficiency, which have strengthened on a year-on-year basis.

He noted that the Non-Performing Loan (NPL) ratio declined to 19.5% in October 2025, down from 22.7% in October 2024, reflecting both a pick-up in bank credit and a contraction in the stock of NPLs. Despite this progress, he cautioned that credit risks remain elevated, stressing that recapitalisation of undercapitalised banks and full implementation of new regulatory guidelines will further strengthen the sector.

Dr. Asiama added that the MPC’s policy decision was informed by broad improvements in macroeconomic conditions, including a projected significant decline in inflation by year-end, a tight monetary policy stance, and a substantial build-up of foreign reserves that anchors exchange rate stability.

“Current risks to the inflation outlook have moderated significantly, and the prevailing high real interest rates provide scope to ease policy to support growth recovery,” he said.

In line with these considerations, the Committee voted by majority to lower the Monetary Policy Rate by 350 basis points to 18%, signalling a move to stimulate economic activity while maintaining financial stability.