Ghana’s Central Bank, the Bank of Ghana (BoG) has disclosed that two banks remained undercapitalised as of December 2025, raising fresh concerns about balance sheet strength within parts of the country’s banking sector.
The affected institutions are Universal Merchant Bank Ghana and Prudential Bank Ghana, according to the central bank. While the broader financial system has shown resilience following years of reforms and clean up efforts, the latest disclosure underscores the need for continued capital strengthening to safeguard stability.
The Governor of the Bank of Ghana, Dr. Johnson Asiamah, made the revelation while outlining the state of the banking industry and the ongoing measures being pursued to address lingering vulnerabilities. He assured stakeholders that commitments have been made to ensure that the two banks receive the required capital within agreed timelines.
UMB Recapitalisation Deadline Extended
For Universal Merchant Bank Ghana, Dr. Asiamah explained that the recapitalisation plan has been extended to the end of March 2026. According to him, the extension is intended to allow other key shareholders to fulfil their capital injection obligations. These shareholders include the Social Security and National Insurance Trust and the State Insurance Company.
He stated that “some commitments have been made to ensure that the two banks receive the necessary capital as soon as possible,” adding that the recapitalisation plans for UMB have been adjusted to accommodate the process. The Governor further indicated that discussions are ongoing between the Bank of Ghana on one hand and SSNIT, SIC and the Ghana Amalgamated Trust on the other hand.
Market watchers note that the involvement of major state linked institutions in the recapitalisation process reflects the strategic importance of ensuring that UMB meets regulatory capital thresholds. The extension to March 2026 is therefore seen as a pragmatic move to balance regulatory discipline with financial system stability.
Government Steps In To Support Prudential Bank
In the case of Prudential Bank Limited, Dr. Asiamah revealed that the government intends to close the bank’s capital gap. This intervention forms part of the Overarching Restructuring Strategy and Plan developed jointly by the Government, the Bank of Ghana and Prudential Bank Limited.
The Governor explained that the plan is designed to restore the bank to full capital adequacy while preserving confidence in the banking system. He noted that the approach aligns with broader efforts to prevent disruptions within the financial sector and to protect depositors.
Analysts say the government’s decision to play a direct role in Prudential Bank’s recapitalisation signals a policy preference for targeted support rather than disruptive resolution options. This approach mirrors previous interventions aimed at maintaining financial stability following Ghana’s banking sector reforms.
Banking Sector Stability Remains Priority
Despite the undercapitalisation of the two banks, the Bank of Ghana maintains that the overall banking sector remains stable and well capitalised. Over the past few years, regulatory reforms have strengthened supervision, improved governance standards and enhanced risk management practices across the industry.
Dr. Asiamah emphasised that regulatory engagement with affected banks is ongoing and that timelines for capital restoration are being closely monitored. He reiterated the central bank’s commitment to ensuring that all licensed banks operate within prescribed prudential requirements.
Industry players believe that transparent communication by the regulator is critical in managing market perceptions. By clearly identifying the institutions involved and the steps being taken, the Bank of Ghana is seeking to reassure customers, investors and counterparties.
Government’s Stake in ADB Highlighted
Meanwhile, the Governor also used the opportunity to clarify the government’s position in the Agricultural Development Bank. According to Dr. Asiamah, the Government of Ghana remains the majority shareholder of ADB, holding 88.16 percent of shares, while the Bank of Ghana owns 9.66 percent.
The clarification is seen as part of broader efforts to enhance transparency around state ownership in financial institutions. ADB plays a critical role in agricultural financing and rural development, making its ownership structure and governance arrangements a matter of public interest.
Meanwhile, financial analysts expect capital strengthening efforts to continue as banks adjust to evolving regulatory expectations and economic conditions. The extension granted to UMB and the restructuring plan for Prudential Bank suggest a calibrated approach by the regulator that combines firmness with flexibility.
As Ghana’s economy continues its recovery trajectory, a sound and adequately capitalised banking sector will remain essential to supporting credit growth, investment and economic expansion. The Bank of Ghana has signalled that it will remain vigilant in enforcing capital requirements while working with stakeholders to achieve sustainable outcomes.
The disclosure that two banks remained undercapitalised as of December 2025 serves as a reminder that financial sector reforms are an ongoing process rather than a one off event. For regulators, banks and shareholders alike, the focus remains on strengthening confidence and ensuring long term stability.