Cover -- CONTENTS -- RECENT DEVELOPMENTS AND OUTLOOK: HIGH POTENTIAL BUT SHORT-TERM RISK -- POLICY DISCUSSIONS -- ECONOMIC POLICY AGENDA: ADVANCING MIDDLE-INCOME STATUS -- FISCAL POLICY: REALIGNING PRIORITIES -- MONETARY POLICY: LITTLE ROOM FOR EASING -- STAFF APPRAISAL -- BOXES -- 1. Assessing Reserve Adequacy in Ghana -- 2. External Sustainability Assessment -- 3. Six Years of Inflation Targeting in Ghana: Policy Lessons and Challenges -- 4. Enhanced Financial Sector Surveillance: Main Conclusions -- FIGURES -- 1. Real Sector Indicators -- 2. External Indicators -- 3. Fiscal Indicators -- 4. Monetary and Financial Indicators -- TABLES -- 1. Selected Economic and Financial Indicators, 2011-18 -- 2A. Summary of Central Government Budgetary Operations, 2011-18 (in percent of GDP) -- 2B. Summary of Central Government Budgetary Operations, 2011-18 (in millions of GHc) -- 2C. Summary of Budgetary Central Government Operations, 2008-18 (in percent of GDP) -- 2D. Summary of Budgetary Central Government Operations, 2008-18 (millions of GHc) -- 3. Monetary Survey, 2011-18 -- 4. Balance of Payments, 2011-18 -- 5. Financial Soundness Indicators, 2007-12 -- APPENDIXES -- I. Risk Assessment Matrix -- II. Inclusive Growth Successes and Challenges -- III. Public Investment, Growth, and Debt Sustainability -- IV. Implementation of the 2011 FSAP Update-Key Policy Recommendations -- CONTENTS -- GLOSSARY -- INTRODUCTION -- MACROECONOMIC ENVIRONMENT IN 2012 -- OVERVIEW OF THE FINANCIAL SYSTEM -- THE BANKING SECTOR -- A. Access to Credit and Banks' Performance -- B. Banking Soundness -- C. Regulatory and Supervisory Developments -- NONBANK FINANCIAL SECTOR -- A. Overview of Financial Services -- B. Rural and Community Banks -- C. Microfinance Services -- D. Mobile Banking -- E. Insurance -- ROLE OF THE STATE IN THE FINANCIAL SYSTEM -- A. Public Banks.

B. Social Security and National Insurance Trust -- C. Independence of the Supervisor -- D. Policy Recommendations -- MONETARY POLICY FRAMEWORK AND IMPLEMENTATION -- A. Inflation Targeting: Challenges and Opportunities -- B. Liquidity Management Framework -- C. Money and Foreign Exchange Markets -- D. Policy Recommendations -- FIGURES -- 1. Evolution of Returns on Average Asset (ROAA) and Equity (ROEE) -- 2. Evolution of NPLs, Provisions, CARs and Leverage Ratios, 2005-2012 -- 3. Evolution of Liquidity Ratios, 2005-2012 -- 4. Selected Interest Rates, Credit to GDP and NPL Rate -- 5. Policy Rate and Money Market Interest Rates (Jan 2007-Dec 2012) -- 6. Interbank Market Activities (Jan 2008-Mar 2013 -- 7. Foreign Exchange Interbank Market (daily -- 2012) -- TABLES -- 1. Structure of the Financial System -- 2. Types of Financial Institutions Outside Commercial Banks -- 3. Overview of the Shareholding of the Four Public Banks (2012) -- 4. Key Financial and Prudential Indicators of Public Banks (2012) -- APPENDIX -- I. Evolution of Financial Indicators (2002-2011) -- CONTENTS -- RELATIONS WITH THE FUND -- JOINT WORLD BANK-IMF WORK PROGRAM, 2012-13 -- STATISTICAL ISSUES.