Banking and Financial Consultant, Dr. Richmond Atuahene, has welcomed the International Monetary Fund’s (IMF) latest recommendations for the Bank of Ghana (BoG), describing macroprudential policy as a “vital complement” rather than a substitute for existing monetary and micro-prudential frameworks.
In a recent assessment, Dr. Atuahene argued that for Ghana to truly safeguard its financial future, it must look beyond just inflation and the safety of individual banks.
Dr. Atuahene explained that while traditional monetary policy focuses on price stability and micro-prudential oversight ensures individual bank safety, macro-prudential policy is the essential missing piece that addresses systemic risk to ensure the stability of the entire financial system.
“Bank of Ghana’s macro-prudential policy must be recognized as a critical, complementary tool to monetary policy, essential for curbing systemic risk and boosting financial resilience,” Dr. Atuahene indicated in his assessment.
A New Shield for the Banking Sector
This assessment comes on the heels of an April 2026 IMF Technical Assistance Report, which conducted a comprehensive review of the Bank of Ghana’s stability framework.
The report arrived at a critical juncture where Ghana’s banking sector is gradually recovering from the 2022 Domestic Debt Exchange Program (DDEP), and the system still faces challenges such as high non-performing loans (NPLs) and heavy exposure to government debt.
To build a more resilient system, the IMF recommended that the BoG establish a dedicated decision-making body, such as a Financial Stability Committee, to monitor and act on risks that threaten the entire financial sector of the country.
The “Second Pillar” of Stability
Dr. Atuahene described macro-prudential policy as a “second pillar” to ensure stability and resilience of the entire financial system. It allows the central bank to multi-task more effectively.
By deploying macro-prudential tools, the BoG can focus its monetary policy on keeping prices stable while using these new measures to tackle specific dangers, such as credit booms or asset bubbles.
“It moves beyond micro-prudential, institution-specific regulation, addressing inter-linkages and structural vulnerabilities,” Dr. Atuahene explained, highlighting that this approach specifically targets structural vulnerabilities, such as “too big to fail” institutions that are so interconnected they could trigger a “domino effect” if they falter.
Building a Rainy Day Fund During Booms
One of the most practical aspects of the IMF’s plan involves the use of Countercyclical Capital Buffers (CCyB) and Domestic Systemically Important Bank (D-SIB) buffers.
In simple terms, these tools require banks to build up a cushion of capital during good times, when credit is flowing easily, so they have enough resources to absorb losses during a downturn without cutting off loans to the public
Dr. Atuahene noted that these tools can react faster to building imbalances, preventing the dangerous buildup of financial vulnerabilities before they explode into a crisis.
A Call for Greater Resilience
As the experts explain, macro-prudential policy is defined by its use of prudential tools to limit systemic risk, which is the risk of a disruption to financial services that could have serious negative consequences for the economy.
If this recommendation is well implemented, for the average Ghanaian, this means a more stable banking environment where credit is managed responsibly, and the system is better prepared to absorb future shocks.
As Dr. Atuahene maintains, recognizing macro-prudential policy as a critical, complementary tool is essential for boosting financial resilience and preventing the kind of financial contagion that has historically derailed economic progress.
