Ghana’s banking industry is quietly welcoming the steady decline in interest rates, with expectations that lower borrowing costs will translate into fewer loan defaults and healthier balance sheets.
Managing Director of FirstBank Ghana, Victor Yaw Asante, says contrary to popular belief, banks are more comfortable operating in a low-interest-rate environment because it improves customers’ ability to repay loans and keeps businesses afloat.
“When rates go down, defaults go down. Businesses become more viable and repayment capacity improves. That’s good for everyone, borrowers and banks alike,” he said.
Mr Asante was speaking at the FirstBank Ghana 2026 Health Walk held at the bank’s head office in Accra, an event that brought together staff, customers and stakeholders as part of activities marking the bank’s 30th anniversary in Ghana.
His comments come amid a sustained easing cycle by the Bank of Ghana, which has significantly reduced the Monetary Policy Rate (MPR) over the past year.
The benchmark rate, which stood at about 27.7 percent in late 2024, had fallen to 18.0 percent by November 2025, with analysts forecasting a further drop to around 15.0 per
cent by mid-2026.
For banks, the trend signals relief after years of tight monetary conditions that strained borrowers, particularly small and medium-sized enterprises (SMEs).
Mr Asante said the lower rate environment was already improving access to credit for SMEs, long regarded as the backbone of the economy but often squeezed out by high lending costs.
He is also optimistic about the outcome of the next Monetary Policy Committee (MPC) meeting, suggesting that another rate cut could be on the horizon.
“I suspect there will be a further drop. The central bank has done a very good job, and we expect this to filter through to lower overnight rates and prime lending rates, delivering real gains to consumers,” he said.
Beyond interest rates, Mr Asante stressed that FirstBank Ghana remains focused on aligning its products with prevailing economic conditions, positioning itself as a reliable partner to businesses navigating an evolving financial landscape.
He said the bank’s long-standing “You First” philosophy continues to guide its operations, reflecting on three decades of presence in Ghana’s financial sector.
Looking ahead, Mr Asante said the next phase of the bank’s growth would be defined by deeper digital integration and innovation, as customer expectations shift towards convenience and seamless service delivery.
“The next 30 years will be about customer-centric banking, supported by digital platforms that help people manage both their personal and business lives more efficiently,” he said.
On speculation about a possible listing on the Ghana Stock Exchange, Mr Asante clarified that while FirstBank is already listed through its parent company on the Nigerian Exchange, a local listing remains an option being considered over the next two to three years as the bank looks to strengthen its capital base.
As interest rates continue to fall, banks like FirstBank are betting that a more accommodative monetary environment will not only reduce loan defaults but also unlock new growth opportunities across the economy.
