Ghana’s economic rebound has created a pivotal moment for the nation’s commercial banks, one that demands bold but disciplined lending, Governor of the Bank of Ghana Dr. Johnson Asiama has indicated.
Speaking to banking executives, Dr. Asiama said the sector’s recapitalisation fuelled by both retained earnings and fresh capital injections has fortified balance sheets and positioned banks to absorb shocks while unlocking growth opportunities.
“With this resilience comes responsibility,” he cautioned. “Our monetary policy stance is shifting toward supporting growth, and banks must respond by expanding credit to the private sector, especially to productive industries. But this expansion must be paired with prudent risk management to safeguard the stability we have worked so hard to achieve.”
The Governor highlighted the sector’s strong fundamentals, with supervisory data showing that Ghana’s banks remain well-capitalised, liquid, and profitable.
Non-performing loan (NPL) ratios have steadily declined, a trend he attributed to both macroeconomic improvements and higher credit underwriting standards.
Dr. Asiama emphasised that the central bank will soon roll out a consolidated package of reforms to future-proof the sector.
These include a new Credit Risk Management Directive aligned with Basel principles to set minimum standards for underwriting, monitoring, and provisioning. Banks will be required to identify and take firm action against deliberate defaulters to ensure repayment discipline.
Other upcoming measures include a Bancassurance Directive to strengthen governance in insurance-banking arrangements, a Large Exposures Directive to reduce concentration risk, and new credit concentration guidelines to diversify loan portfolios.
“These reforms are not just about compliance,” Dr. Asiama stressed. “They are about aligning Ghana’s banking system with the highest international standards, ensuring that it remains a catalyst for sustainable growth.”
With Ghana’s economy regaining momentum, commercial banks have both the capacity and the duty to fuel the next chapter of the country’s economic transformation without compromising the stability that underpins it.
