Despite the elevated credit risks, Dr. Ernest Addison, the governor of the Bank of Ghana (BoG), has stated that, overall, the banking sector remains stable.
According to him, the bank’s profitability and liquidity positions have kept getting better.
He said that more than half of the 23 Banks are fully capitalized and do not require recapitalization.
The process of raising capital to improve a bank’s financial position is known as bank capitalization. It entails raising the bank’s capital accounts through the issuance of new shares, the retention of earnings, or the acquisition of outside funding.
At the end of 2023, he stated, “the majority of the outstanding banks have met more than two thirds of the required recapitalization over a three-year period within one year.”
