The Governor explained that key financial soundness indicators such as solvency, profitability, asset quality, and operational efficiency showed year-on-year improvement.
He revealed that the Non-Performing Loans (NPL) ratio dropped to 19.5% in October 2025, down from 22.7% in October 2024, helped by increased lending activity and a reduction in the volume of bad loans.
“Despite these gains, credit risks remain high. Going forward, measures to recapitalise the few undercapitalised banks, along with full enforcement of new regulatory guidelines aimed at lowering NPLs, will help reinforce the sector,” he said at the 127th Monetary Policy Committee (MPC) press briefing in Accra.
Dr. Asiama also noted that interest rates have been trending downward in line with cuts to the Monetary Policy Rate. He said the interbank weighted average rate fell from 27.7% in October 2024 to 21.0% in October 2025.
He added that the 91-day Treasury bill rate dropped to 10.6% in October 2025, from 25.8% a year earlier, while the average lending rate of banks declined to 22.2%, compared to 30.5% during the same period in 2024.
These improvements, he said, have supported a steady rebound in private sector credit. After contracting by 7.1% in May 2025, real private sector credit growth rose to 5.4% in October 2025.
