The Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, has called on banks to broaden access to credit and support private sector-led growth, while continuing to manage risks prudently.
Speaking at a meeting with bank CEOs today, Dr. Asiama highlighted that inflation remains within the target band, creating an opportunity for banks to reexamine their lending strategies. He emphasized the need to increase credit to productive sectors of the economy without compromising loan quality.
“The banking sector remains a cornerstone of Ghana’s economic stability,” he said, noting that recent supervisory data shows the sector is well-capitalized, liquid, and profitable. He also pointed to a steady decline in non-performing loans, driven by improved macroeconomic conditions and stronger credit practices.
Dr. Asiama praised the recapitalization efforts of banks, which have boosted resilience and positioned the sector to absorb shocks and seize growth opportunities. However, he stressed that with this resilience comes responsibility.
The Governor announced that the Bank of Ghana will soon roll out a set of reforms to strengthen the banking system. These include new directives on credit risk management, large exposures, liquidity risk, and governance in bancassurance agreements.
A key focus will be on improving credit and risk governance, including firm action against deliberate loan defaulters. Banks will be required to hold enough high-quality liquid assets to cover at least 30 days of financial stress.
“These reforms are meant to future-proof the sector and close existing compliance gaps,” Dr. Asiama concluded, urging banks to support economic growth while preserving the stability achieved so far.
Ghana|Atinkaonline.com
