Governor of the Bank of Ghana (BoG) Dr. Johnson Pandit Asiama has delivered more than just pleasantries to Ghana’s top banking executives at the post-Monetary Policy Committee (MPC) meeting. The Central Bank issued a strong, clear-eyed address that balanced macroeconomic optimism with a hard-nosed regulatory agenda.
The BoG Governor was emphatic that Ghana’s recovery is real, but the financial sector must now match that momentum with discipline, fairness, and full accountability.
Holding the Line: Inflation Under Control, But No Room for Complacency
The MPC’s decision to maintain the policy rate at 28% wasn’t a surprise, but the reasons carried weight. Inflation is declining, the cedi has appreciated by more than 24% this year, and international reserves are on the rise.
In Dr. Asiama’s words, “The disinflation process, while encouraging, is not yet complete.” Holding the rate, he noted, prevents premature loosening and reinforces confidence in Ghana’s recovery.
Ghana’s headline inflation hit 21.2% in April, a significant decline from the highs seen in previous years. With stable exchange rates and tighter liquidity, the Bank’s internal models now suggest inflation could hit the medium-term target by early 2026, sooner than expected.
Five New Rules That Will Change Banking in Ghana
The core of the Governor’s address, however, wasn’t just about monetary policy. It was also about regulating the sector. In a departure from previous MPC briefings, Dr. Asiama unveiled five new regulatory measures that promise to reshape banking behavior.
New CRR Directive: Local Currency, Local Reserves
As part of efforts to strengthen regulation, Dr. Asiamah announced that banks are now required to match reserves to the currency of deposits. This means cedi reserves for cedi deposits and foreign exchange reserves for FX deposits. It’s a targeted move aimed at bringing liquidity alignment and discipline to the forex market, especially given past distortions from unbalanced reserve structures.
Pricing Fairness: No More Hidden Fees
Henceforth, Optional Issuer Fees (OIFs) on cross-currency card transactions will be capped at 2%. More importantly, all fees must be disclosed before any transaction goes through. The Governor expressed his disapproval and also slammed the banks for the shady practice of charging interest on dormant credit accounts.
He said those acts are “unethical and commercially indefensible.” He warned that banks must recalibrate their pricing strategies or face consequences.
Digital Lending: Guidelines Coming August 2025
The surge in digital loans, particularly among youth and informal workers, has raised red flags. Reports of harassment, fraud, and predatory lending led to a bold promise by the Governor. The Central Bank is set to release new digital lending guidelines by August.
The new rules, the Governor says, will cover licensing, privacy, interest disclosures, and ethical collections. Banks and fintechs have been warned to clean up now or be left out.
The NPL Crackdown: Write-offs, Blacklists, and Public Shame
Non-Performing Loans (NPLs) are still clogging Ghana’s credit system, Dr. Asiamah bemoaned. The central bank is mandating that fully provisioned, unrecoverable loans be written off. A 10% cap on NPL ratios by end-2026 is now law. Willful defaulters will be blacklisted and banks must publish their names in financial statements.
“Transparency is no longer optional,” Dr. Asiama said.
Local Governance for Foreign-Owned Banks
Perhaps the most politically charged reform is the new requirement for foreign banks to retain true local decision-making. No more rubber-stamping decisions made in London or Johannesburg. Local boards must have real authority, and any delegation to foreign parents must be pre-approved.
“This directive is not anti-foreign. It is pro-accountability,” the Governor declared.
Digital Assets and Crypto: “Regulation Is Coming”
Dr. Asiama confirmed that the Bank of Ghana is finalizing a crypto regulation framework with the SEC. He urged banks to begin preparing by upgrading their cyber defenses, revising AML/KYC protocols, and educating customers.
He indicates crypto is no longer fringe, it’s a financial reality that requires readiness.
A Sector Still Vulnerable
While profitability and recapitalization efforts are improving, the Governor admitted that eyed risks that remain. Some banks still face capital shortfalls, governance gaps, and lax credit discipline.
The new regulatory measures are designed not just as penalties but as correctives aimed at pushing Ghana’s financial sector towards global best practice.
A Call for Partnership
Dr. Asiama ended with a sober but hopeful reflection. “We are in a new phase of Ghana’s recovery,” he said. “But this phase also requires more discipline, greater fairness in conduct, and deeper alignment between policy intent and market behavior.”
