The Bank of Ghana (BoG) has reaffirmed its support for consolidation in the banking sector, saying mergers can create larger and more resilient institutions capable of handling major projects.
Speaking at a press briefing following the 128th Monetary Policy Committee (MPC) meeting, Governor Dr. Johnson Asiama highlighted the need for bigger banks with deeper financial backing to support the government’s Big Push Agenda.
Observers noted that state-owned institutions such as the Tema Oil Refinery (TOR) often require letters of credit for operations, while some government projects may involve long-term bonds, which can be difficult to finance without banks with substantial financial capacity.
Asiama said the banking industry operates like a market, with freedom of entry and exit. He emphasized the importance of economies of scale in larger banks.
“So yes, the bigger the bank, the more it can handle all kinds of projects because it has the financial muscle, as well as the risk management framework to handle big-ticket projects,” he said.
He added that the BoG encourages consolidation and supports any bank that wants to merge with another to create a bigger institution.
“The Bank of Ghana has guidelines to achieve that aim. So, yes, we welcome bigger banks, and if you have any proposals, our Banking Supervision staff are always available to provide clarifications on this subject,” Asiama said.
The Governor said larger banks are better positioned to support high-value projects and complex financing needs, including those arising from government-backed infrastructure, industrial programs, and strategic development initiatives.
“Having institutions with deeper financial capacity allows us to support large-scale projects efficiently and safely,” he said, highlighting the BoG’s commitment to strengthening the sector.
Asiama’s remarks signal a clear regulatory endorsement of consolidation as a strategic tool to enhance the banking sector’s ability to support Ghana’s long-term growth and national development priorities.
