S&P flags 16.1 % NPL ratio as too high for Ghana banks
S&P says 16.1 % NPL ratio shows banks still under pressure amid debt restructuring and inflation worries.
Ghanaian banks still grapple with an alarmingly high Non‑Performing Loan ratio of 16.1 % as of June 2026, according to S&P Global. The figure reflects the lingering debt exchange programme of 2022, accumulated arrears owed to suppliers and contractors, and ongoing exchange‑rate and inflation pressures on households and firms.
This ratio captures a system still burdened by years of macro‑economic turbulence, the country’s 2022 default and the ensuing debt restructuring. S&P notes that after that restructuring, 13 local banks needed recapitalisation, but five of them – one of which is a state‑owned bank – remain under‑capitalised, contradicting the Bank of Ghana’s claim that every bank meets the new minimum capital threshold.
Inflation is climbing in 2026, yet S&P expects it to be tamed relative to historical norms, citing improving monetary policy credibility and the government’s decision to stop financing deficits through the central bank. The agency projects average inflation to settle at the upper edge of the Bank of Ghana’s 6‑10 % target range, at least until 2029.
Looking ahead, S&P will monitor whether the identified under‑capitalised banks secure fresh capital and whether the projected inflation trajectory stays within the forecast band. Their next rating review will hinge on these developments.
