Ghanaian banks strengthen capital buffers ahead of tighter liquidity in 2027

Ghana’s banking sector is proactively reinforcing capital buffers as lenders prepare for a tighter liquidity environment starting in 2027, when the country faces a new cycle of substantial external debt repayments.

Banks are repositioning portfolios and tightening risk management in anticipation of reduced fiscal space, with liquidity pressures expected to rise as IMF-supported programmes conclude in 2026 and large external obligations become due. Ghana is projected to pay roughly USD 2.5 billion in 2027 and USD 2.4 billion in 2028, placing renewed strain on government financing and the banking sector.

Data obtained by Citi Business News indicate that banks are rebalancing their asset mix, reducing exposure to government securities while diversifying revenue streams through fee-based services and trade-related activities. This strategy forms part of ongoing efforts to rebuild balance sheets following previous macroeconomic pressures.

Total sector assets grew 33.8% to GH¢367.8 billion in 2024, while deposits, the primary funding source, expanded 28.8% to GH¢276.2 billion.

Profitability indicators paint a mixed picture. Return on Assets (ROA) for 2024 remained above 5% for most of the year, dipping to 4.81% in November before recovering to 5.04% in December. Return on Equity (ROE) eased to 30.8% from 34.2% a year earlier, reflecting more cautious balance-sheet management and stronger risk controls.

In response to evolving market conditions, banks are also accelerating growth in trade finance, diaspora-focused banking, and regional payment and settlement services under the African Continental Free Trade Area (AfCFTA). These initiatives aim to position Ghana as a competitive West African trade hub while mitigating the impact of upcoming fiscal pressures.