Five banks, including National Investment Bank (NIB), according to the International Monetary Fund (IMF), are currently struggling to meet their recapitalisation requirements.

This was reported by the IMF in its July 2025 Country Report, which shared details with the country’s Fourth Review under the Extended Credit Facility, along with assessments of Ghana’s banking sector, fiscal performance, and debt sustainability.

“…a few banks (including one state-owned) are materially behind on their recapitalisation schedule due to slow progress against shareholder capital commitments, higher NPLs, and/or delayed booking of credit impairments and required provisioning identified under the BoG’s 2023 asset quality assessments" parts of the report revealed.

Recapitalisation requirements refer to the minimum amount of money (capital) that a bank is required to have to stay financially strong and stable to avert a collapse despite incurring losses.

The report also noted that banks that are currently still struggling with recapitalisation requirements are under intensified monitoring by the Bank of Ghana (BoG) and are subject to corrective measures aimed at accelerating their recapitalisation plans to achieve a CAR of 13% by the end of March 2025.

"Parliamentary approval and implementation of the World Bank-funded segment of the GFSF could help some banks achieve CAR targets by end-2025, provided that they secure capital injections sufficient to reach capital levels eligible for access," the Fund projected.

The IMF further emphasized that "stepped-up efforts to improve the crisis management and resolution framework, enhance financial-sector safety nets, and address legacy issues at the specialised deposit-taking institutions are also important.”

According to the reports, about 13 banks that faced capital deficits after the implementation of the Domestic Debt Exchange Programme (DDEP) by the erstwhile government have now met their requirements, with some even exceeding their recapitalization requirements as of the end of 2024.

The IMF believes that these banks are performing well and on track due to increased profits and support from the Ghana Financial Stability Fund (GFSF)—a net fund that was set up in August 2023 under the Akufo-Addo-led administration to support financial institutions affected by Ghana’s DDEP.

It also says these banks are likely to reach the required safety level of 13% (called the Capital Adequacy Ratio, or CAR) on their own—without needing extra help—by the end of 2025.

“The Bank of Ghana has implemented risk containment measures to support banking system stability. It appropriately intensified monitoring and escalated measures at weak, undercapitalised banks to promote timely recapitalisation. The Ghana Financial Stability Fund (GFSF), established in August 2023, has provided targeted support to banks, contributing to improved profitability and recapitalisation progress,” the report noted.

The IMF stated that the government is working to support the struggling banks as part of efforts to strengthen the country’s financial stability.

“The authorities have taken intensified actions to address undercapitalised banks. Looking ahead, further strengthening financial sector stability requires fully implementing the plan to strengthen NIB, finalising the reform strategy to support state-owned banks’ viability and sustainability, and developing contingency plans to address weak banks that fail to recapitalise," the report stated.

Earlier reports indicated that 15 out of 21 banks had recorded losses as a result of the Domestic Debt Exchange Programme.

Finance Minister Dr Cassiel Ato Forson has announced the government's decision to recapitalize National Investment Bank (NIB), Agricultural Development Bank (ADB) and Consolidated Bank Ghana Limited (CBG).

Fuller details of this comprehensive recapitalization plan will be unveiled during the upcoming mid-year review, Dr Forson noted in a post on X on July 9.

In May last year, the erstwhile government earmarked GH¢2.3 billion for the recapitalization of the National Investment Bank (NIB).

"As part of the implementation of the Post Covid-19 Programme for Economic Growth (PC-PEG), Cabinet has approved the plan for restructuring and recapitalization of the National Investment Bank (NIB)," the former Finance Minister Dr. Mohammed Amin Adam said.

The recapitalization plan was to involve a programmed equity injection of about GHS2.3 billion over a year, with the first tranche of GHS400 million expected to be transferred to NIB before the end of May last year.

This initiative was critical to strengthening the governance structure, enhancing operational efficiency, and improving risk management to ensure the financial viability of NIB.