BoG expects banks to 'build capital buffers quickly' if H1-2023 profitability trend continues

The half-year performance of banks in 2023 shows "considerable growth" in profits, following "significant losses" posted in 2022 on account of the Domestic Debt Exchange Programme (DDEP), the Bank of Ghana has noted.

It says "if this trend continues, we expect banks to rebuild capital buffers quickly in addition to equity capital injections by shareholders to give a further boost to real sector growth and to build resilience of the banking sector".

Governor Ernest Addison told journalists at a press conference in Accra on Monday, 24 July 2023 after the last monetary policy committee meeting that "early operationalisation of the Ghana Financial Stability Fund should also help provide additional recapitalisation support for eligible banks in line with the criteria and governance framework agreed with the IMF and the World Bank".

Read the MPC's full statement below: