Ghana's banking sector is entering a significant structural transition as the country's macroeconomic environment continues to stabilize, with inflation easing and interest rates d
The report indicates that ghana’s banking sector is entering a significant structural transition as the country’s macroeconomic environment continues to stabilize, with inflation easing and interest rates declining.
It further notes that against this backdrop, PricewaterhouseCoopers (PwC) Ghana has unveiled the findings of its 2026 Ghana Banking Survey under the theme, “When Rates Recede: Sustaining and Returning Value in Ghana’s Banking Sector Through a Falling Interest Rate Cycle.”
The survey warns that while lower interest rates are expected to stimulate borrowing and support economic growth, they also threaten banks’ traditional earnings model by compressing net interest margins. It argues that banks must urgently diversify their revenue streams and embrace digital, transaction-driven business models to sustain profitability.
The findings were presented at PwC’s 2026 Ghana Banking Forum, attended by chief executive officers, chief financial officers, representatives of the Ghana Association of Banks (GAB), the Bank of Ghana (BoG), and other key stakeholders in the financial sector.
Speaking at the forum, Country Senior Partner at PwC Ghana, Vish Ashiagbor, described the improving macroeconomic environment as a positive development but cautioned that it presents a new challenge for commercial banks.
“The macroeconomic stabilization we witnessed in 2025 is a welcome relief, signaling a strong recovery path. However, for commercial banks, this success brings a unique challenge. We are transitioning from a high-interest-rate environment that cushioned margins to an easing cycle that will test corporate resilience. This next phase must be driven by deep, deliberate banking transformation,” he said.
According to the survey, the Bank of Ghana’s monetary policy easing in response to declining inflation led to a reduction of more than 1,400 basis points in the Ghana Reference Rate (GRR), with the industry’s average lending rate falling by approximately 600 basis points.
While the decline in borrowing costs is expected to encourage private sector credit growth, it also poses an immediate risk to banks by reducing the interest income that has traditionally driven profitability.
PwC’s survey reveals that Ghanaian banks remain heavily dependent on interest income, with net interest income accounting for nearly 70 percent of total industry revenue. As lending rates continue to decline, the report warns that banks’ profitability will come under increasing pressure.
The survey also highlights a major shift in banks’ income structure over the past decade.
In 2015, net interest income was primarily generated through lending, with loans contributing 64 percent compared with 33 percent from investment securities. By 2025, however, the model had reversed, with government securities accounting for 55 percent of net interest income while loans contributed just 38 percent.
This growing reliance on government securities leaves banks increasingly exposed to declining Treasury bill yields as interest rates continue to ease.
The report further notes that bank lending remains concentrated in the services sector, which accounted for 22.2 percent of total credit in 2025, followed by commerce and finance at 19 percent. These sectors also recorded the highest levels of impaired assets and non-performing loans, highlighting persistent credit risk despite the improving economic outlook.
PwC is urging banks to rethink their business models by moving beyond traditional balance sheet lending towards digital ecosystems that generate sustainable, fee-based income.
