Although the banking sector continues to be profitable, well-capitalised and liquid, the Capital Adequacy Ratio (CAR) without reliefs rose to 11.3 per cent in December 2024, higher than the 8.3 per cent recorded in December 2023, Governor of the Bank of Ghana (BoG), Dr Ernest Addison has said.
He stated that profits went up in 2024 relative to 2023, but the pace of growth slowed, resulting in the moderation of profitability indicators during the period.
CAR is an indicator of how well a bank can meet its obligations.
Dr Addison added that in the outlook elevated credit risk remained the main upside risk to the banking sector. "The industry's Non-Performing Loans (NPL) ratio increased to 21.8 per cent in December 2024, up from 20.6 per cent in December 2023," he said during the 122nd Monetary Policy Committee (MPC) press conference in Accra on Monday, January 27 held at the Bank Sauqrae, the newly built headquarters of Ghana's central bank.
