Ghana’s savings and loans sector recorded significant growth in customer deposits in 2025 despite persistent liquidity pressures, rising funding costs and concerns over asset quality, the Ghana Association of Savings and Loans Companies (GHASALC) has disclosed.
Deposits mobilised by member institutions increased from GH¢6.1 billion to GH¢8.5 billion by the end of 2025, representing a significant expansion in the sector’s deposit base.
The Chief Executive Officer of GHASALC, Tweneboah Kodua Boakye, disclosed this at the Association’s 16th Annual General Meeting held on August 27, 2026.
He said the growth demonstrated continued confidence in savings and loans institutions, even as operators navigated a challenging operating environment.
“Our institutions continue to mobilise deposits. If you check our reports from page 31 to page 33, you will see that deposits grew from GH¢6.1 billion to GH¢8.5 billion,” he said.
Mr Boakye, however, noted that the sector continued to face pressure from liquidity constraints, funding costs and asset quality challenges.
Although the industry’s non-performing loan (NPL) ratio improved marginally from 15 per cent to 14 per cent, he said the figure remained above the level considered sustainable by the industry.
GHASALC is targeting a reduction of the NPL ratio to below 10 per cent by the end of the year.
“This is not where we want to be as an industry. We are actually working towards making sure that by the end of the year we are below the 10 percent that the sector plans to achieve,” Mr Boakye said.
He identified regulatory compliance costs, investments in technology, changing customer behaviour and competition from larger financial institutions as additional pressures confronting operators.
Despite the challenges, he said the sector had significant room for expansion, particularly in financial inclusion, digital financial services and financing for micro, small and medium-sized enterprises (MSMEs).
According to him, millions of individuals and businesses continue to require accessible financial services that are appropriately designed to meet their needs.
Mr Boakye said GHASALC supported the Bank of Ghana’s ongoing reforms of the microfinance sector but urged the regulator to ensure that implementation did not undermine institutions that had served the public for many years.
He said the objective should be to build sustainable institutions, protect depositors and preserve jobs while ensuring an orderly transition to the new regulatory framework.
The Board Chairman of GHASALC similarly called for the practical realities of existing institutions to be considered, particularly their capital and liquidity positions.
He said the reforms should strengthen the sector rather than unintentionally weaken institutions and undermine financial inclusion.
Meanwhile, the Second Deputy Governor of the Bank of Ghana, Matilda Asante-Asiedu, said the central bank recognised concerns raised by industry players and remained committed to engaging stakeholders throughout the reform process.
She said the reforms were intended not merely to impose stricter regulations but to restore confidence in the financial sector, deepen financial inclusion and build more resilient financial institutions.
The new regulatory framework will consolidate the microfinance sector into core categories, including microfinance banks, community banks, credit unions and last-mile providers, with specific mandates and regulatory requirements.
The Bank of Ghana is also expected to issue regulations covering corporate governance, risk management, business models and last-mile providers, which will be opened to industry stakeholders for comments.
Mrs Asante-Asiedu urged operators to actively contribute to the reform process, saying their practical experience was necessary to ensure that the new framework reflected realities within the sector.
She acknowledged that implementation would involve compliance and professional adjustment costs but maintained that the ultimate objective was to create a more stable, robust and trusted financial sector.
Beyond the performance of member institutions, GHASALC itself reported an improvement in its financial position.
Its audited financial statements for the year ended December 31, 2025, showed that total income increased from GH¢932,207 to GH¢1.84 million, while membership dues rose from GH¢542,500 to GH¢870,900.25.
Other income also increased from GH¢429,000 to GH¢1.07 million, while the Association’s surplus rose from GH¢149,000 to GH¢373,433.25.
Total assets increased from GH¢690,621.25 to GH¢1.18 million, with accumulated funds rising to GH¢1.001 million.
Mr Boakye further disclosed that members had unanimously agreed to reposition the Association to align with the emerging regulatory structure, including the possibility of adopting a new name if the top-tier category is ultimately designated as microfinance banks.
The repositioning, he said, would strengthen advocacy, develop the Association into a stronger industry knowledge hub, deepen strategic partnerships and improve its representation within Ghana’s evolving financial sector.
GHASALC said its next phase would focus on financial sustainability, digital transformation, capacity building, stronger corporate governance and industry unity as savings and loans companies prepare for significant regulatory and technological changes.
