Governor of the Bank of Ghana (BoG), Dr. Johnson Pandit Asiama, has called on banks to take advantage of improving macroeconomic conditions, declining interest rates and advances in financial technology to develop innovative products that better serve the evolving needs of households and businesses.
Speaking at a post-Monetary Policy Committee (MPC) engagement with Chief Executive Officers and Heads of Banks in Accra, Dr. Asiama said the banking sector was operating in a significantly stronger economic environment and should use the opportunity to deepen financial intermediation and support productive sectors of the economy.
“I therefore urge banks to leverage the gains from macroeconomic stability, declining interest rates, and advances in financial technology to develop innovative products that meet the evolving needs of households and businesses,” he said.
The Governor’s call comes against the backdrop of improving economic indicators highlighted during the recent MPC meetings. According to him, Ghana’s domestic economy continues to demonstrate resilience despite uncertainties in the global environment.
The Bank of Ghana’s Composite Index of Economic Activity expanded by 12.6 per cent in March 2026, compared with 2.3 per cent during the same period last year. The strong performance was driven by growth in private sector credit, industrial activity, trade and consumption.
Inflation, which remains one of the central bank’s key concerns, has also stayed largely under control. Headline inflation rose marginally from 3.2 per cent in March to 3.4 per cent in April and 3.7 per cent in May 2026. However, Dr. Asiama noted that core inflation continued to decline, indicating that underlying inflationary pressures remained subdued.
On the fiscal front, he said prudent expenditure management and fiscal discipline resulted in a fiscal surplus of 0.1 per cent of Gross Domestic Product (GDP) during the first quarter of 2026, outperforming programme expectations.
The Governor also highlighted continued strength in the external sector. Ghana recorded a current account surplus of US$3.1 billion in the first quarter of the year, supported by strong export earnings from gold and cocoa as well as stable remittance inflows. Gross International Reserves increased to US$14.4 billion, equivalent to 5.7 months of import cover, further strengthening the country’s external buffers.
Dr. Asiama noted that the banking sector itself had recorded significant improvements, reflecting the benefits of recent reforms and improved macroeconomic conditions.
Total banking sector assets grew by 26.6 per cent to GH¢493.9 billion, while the industry’s Capital Adequacy Ratio improved to 22.3 per cent from 17.5 per cent a year earlier. Asset quality also strengthened, with the Non-Performing Loan ratio declining from 23.6 per cent to 18.0 per cent.
“I am particularly encouraged by the continued improvement in the banking sector,” he said, adding that the developments demonstrated the resilience of the industry and the collective efforts undertaken by financial institutions.
Despite the progress, the Governor cautioned banks against complacency, noting that elevated credit risks remained a concern. He urged institutions to strengthen credit underwriting standards, improve recovery processes and fully comply with regulatory requirements aimed at reducing non-performing loans to prudent levels.
Dr. Asiama stressed that sustaining macroeconomic stability alone would not be sufficient to achieve long-term prosperity. Instead, he said banks must increasingly focus on their core role of mobilising savings and channeling capital into productive sectors of the economy.
He encouraged financial institutions to move beyond traditional lending by embracing digital innovation and positioning themselves as strategic partners to businesses. This, he said, should include providing business advisory services, supporting entrepreneurship, facilitating market access and helping firms identify export opportunities through networks established by parent institutions and strategic partners.
The Governor further disclosed that the Bank of Ghana would work closely with banks and other stakeholders to develop innovative investment-linked remittance products capable of converting a larger share of remittance inflows into productive investments, business expansion, infrastructure development and long-term capital formation.
According to him, such initiatives have the potential to deepen financial markets, strengthen economic resilience and support sustainable growth.
As Ghana continues to enjoy improving economic conditions, Dr. Asiama said the challenge before the banking industry is to transform stability into prosperity by supporting businesses, expanding financial inclusion and driving innovation across the financial sector.
