The recent downward revision of the ratio should minimize the pressure on these banks. As at September 2014, the combined net profits of banks was GH₵1.51 billion which translated into an annualised 34-percent return on equity. Despite the impressive industry-level performance, pockets of challenges remain in the banking industry that need to be addressed.
A number of banks have high and growing nonperforming loans (NPLs), thin capital buffers for risk absorption, and have manifested liquidity challenges and thus resorted to frequent inter-bank borrowing. The 2009–12 recapitalizations helped to shore up banks’ capital, enabling them contain these difficulties. However, inflation and the cedi’s depreciation over the period meant some capital erosion.