The Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, has called on banks to channel their renewed strength into supporting the real sector by expanding credit to productive enterprises, particularly small and medium-sized businesses, to sustain the country’s economic recovery.
He explained that the easing of macroeconomic pressures, including a policy rate cut to 18 per cent, falling inflation, and improved external buffers, provided room for responsible credit growth.
Dr Asiama said after years of strain, banks were now more liquid, better capitalised, and profitable, placing them at the centre of efforts to convert stability into inclusive growth.
Speaking at the opening of the post-127th Monetary Policy Committee (MPC) meeting with heads of banks in Accra on Tuesday, the Governor stressed that the next phase of reforms would strengthen regulation and risk management, while expecting banks to play a more catalytic role in financing businesses that drive jobs and innovation.
“We call on banks to support the real sector, expand credit to productive enterprises, especially small and medium-sized enterprises (SMEs), and drive innovation that enhances access and inclusion, while managing risk.
“Let us turn this recovery into a financial system that is both stable and catalytic in shaping Ghana’s prosperity,” he said.
Macroeconomic stability
Dr Asiama said improving macroeconomic environment would provide a solid platform for banks to scale up lending to productive sectors without undermining financial stability.
He stated that the recent 350-basis-point reduction in the policy rate to 18 per cent reflected growing confidence in the inflation outlook and the strength of Ghana’s external buffers, stressing that stability must now translate into real economic impact.
He said the steady decline in inflation to 6.3 per cent, alongside re-anchored inflation expectations, had restored predictability for businesses and investors.
This, he argued, created favourable conditions for long-term planning, investment, and job creation across key sectors of the economy.
“What we are seeing today is the payoff from discipline and coordination, and it is important that banks seize this moment to responsibly expand credit to sectors that drive growth,” he said.
Banking sector positioned
Describing the banking sector as central to the country’s recovery, the Governor stated that improved liquidity, stronger capital positions, and renewed profitability had placed banks in a better position to finance economic activity.
While acknowledging lingering challenges, particularly around asset quality, he said the overall direction of the sector was positive and encouraging.
Dr Asiama explained that banks must go beyond balance sheet repair to actively support businesses, especially SMEs that remain constrained by limited access to affordable financing.
He said that effective financial intermediation is critical to translating macroeconomic gains into improved livelihoods.
“At the heart of this progress stands the banking sector, and we expect it to become more catalytic in supporting the real economy,” he stated.
The next phase
Going ahead, Dr Asiama said BoG would intensify regulatory reforms aimed at safeguarding stability while enabling innovation and inclusion.
He outlined upcoming measures, including enhanced stress-testing, recovery planning, and a revised risk-based supervisory framework, to ensure banks remain resilient in an uncertain global environment.
At the same time, he urged financial institutions to leverage technology and innovative products to reach underserved communities and informal sector players.
He explained that inclusive finance was essential to sustaining growth and building public trust in the financial system.
“We call on banks to support the real sector, expand credit to productive enterprises, especially SMEs, and drive innovation that enhances access and inclusion, while managing risk,” the Governor added.
Source:
www.graphic.com.gh
