The International Monetary Fund (IMF) has emphasized the importance of continued progress in addressing Ghana’s financial sector challenges to safeguard stability.
The IMF commended the Bank of Ghana for taking steps to recapitalize troubled banks but stressed the need for sustained efforts.
A key concern is the rising level of non-performing loans (NPLs), which has reached 24.1% in June 2024. The IMF has urged the authorities to strengthen supervision and provisioning for NPLs.
Addressing issues within specialized deposit-taking institutions and non-banking financial institutions is also crucial, according to the IMF.
The fund has highlighted the need for effective resolution strategies and the prevention of similar problems in the future.
While recognizing improvements in the banking sector’s performance, the IMF cautioned that elevated credit risk remains a threat to recovery.
The sustained profitability of banks, adherence to recapitalization plans, and strict credit underwriting are essential for building resilience.
