The Bank of Ghana (BoG) has challenged commercial banks to take advantage of the country’s improving economic conditions to expand lending to households, small businesses and other productive sectors.
BoG Governor, Dr Johnson Pandit Asiama, said the recent decline in inflation, relative stability of the cedi, improved foreign reserves and strong growth in private sector credit had created favourable conditions for banks to support economic expansion.
He made the call during a post-Monetary Policy Committee (MPC) engagement with heads of banks at Bank Square in Accra.
According to Dr Asiama, the banking sector must ensure that the gains recorded in the macroeconomy translate into increased investment, business expansion and job creation.
“Banks are not merely financial intermediaries; you are important business partners in the growth and transformation of the economy,” he said.
He urged banks to adopt more innovative lending models, particularly for small and medium-sized enterprises (SMEs), which continue to face challenges accessing finance because of perceived risks associated with their operations.
The Governor stressed the need for banks to develop products tailored to the realities of businesses, especially those operating in agriculture and related value chains.
He suggested that lenders consider flexible repayment structures that correspond with the seasonal nature of agricultural activities and the cash flows of businesses.
Dr Asiama said such an approach would allow SMEs to obtain financing under more suitable conditions while helping banks manage lending risks more effectively.
His call comes against the backdrop of stronger credit growth in the economy. Private sector credit growth rose sharply to 41.2 per cent in June 2026, compared with 8.6 per cent during the same period a year earlier. Real private sector credit growth stood at 34.1 per cent.
The Governor also highlighted the broader improvement in economic conditions, noting that Ghana’s economy expanded by 6.4 per cent in the first quarter of 2026, compared with 6.2 per cent in the corresponding period of 2025.
Inflation also fell to 4.6 per cent in July from 5.3 per cent in June, supported by slower food inflation and relative stability in the exchange rate.
Despite the positive developments, Dr Asiama said some businesses, particularly SMEs in agriculture, continued to struggle to secure adequate financing.
He therefore encouraged banks to deepen their understanding of the sectors they serve and design lending solutions that reflect the specific risks and opportunities within those industries.
Banks strengthen balance sheets
Dr Asiama commended banks for improvements in their financial positions, saying total banking sector assets increased by 30.7 per cent in June 2026.
The sector’s Capital Adequacy Ratio also improved significantly to 20.4 per cent from 10.6 per cent a year earlier, while the Non-Performing Loan ratio declined from 23.1 per cent to 16.1 per cent over the same period.
However, he cautioned banks to strengthen monitoring of customers and address practices contributing to the increasing incidence of dud cheques.
He also urged banks to exercise greater caution when partnering digital lending companies, stressing the need to verify that Digital Credit Service Providers are properly licensed.
BoG pushes diaspora investment
Beyond domestic lending, the Governor urged banks to develop financial products capable of attracting more investment from Ghanaians living abroad.
He said remittances were still largely being channelled through basic money-transfer services rather than structured savings, bonds and other investment instruments.
According to him, developing targeted diaspora investment products could help convert remittance flows into longer-term financing for productive activities while deepening financial inclusion.
The BoG maintained the Monetary Policy Rate at 14 per cent at its 131st MPC meeting in July 2026, with the Governor saying the current policy stance remained appropriate to consolidate the gains made on inflation while monitoring external risks.
Dr Asiama said the progress made by the economy provided banks with a strong foundation to expand their role in supporting sustainable growth.
He urged financial institutions to seize the opportunity to ensure that the improving macroeconomic environment delivers tangible benefits to businesses, households and the wider economy.
