Expand credit to SMEs to reflect stability in economy – Governor urges banks
THE Bank of Ghana (BoG) has called on banks to support the real sector by expanding credit to productive enterprises, particularly Small and Medium-scale Enterprises (SMEs).
It also entreated banks to drive innovation that would enhance access and financial inclusion, while prudently managing risk.
“Let us turn this recovery into a financial system that is both stable and catalytic in shaping Ghana’s prosperity,” the Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, appealed in Accra on Tuesday during the Post-Monetary Policy Committee (MPC) engagement with Heads of Banks.
The Governor pledged that the BoG would continue to work closely with the industry to safeguard stability and support sustainable credit growth.
Dr Asiama said that while challenges remained, particularly in asset quality, the central bank was committed to promoting responsible risk management across the sector.
“Looking ahead, the Bank of Ghana will consolidate regulatory gains through strict enforcement, expanded training, and deeper engagement with the industry,” he said.
The Governor stressed that the next phase of BoG reforms would include new directives spanning stress-testing, recovery planning and risk management to further enhance the sector’s resilience and alignment with global best practices.
According to him, the revised Risk-Based Supervisory Framework of the BoG was designed to strengthen forward-looking oversight by focusing on business risk, financial resilience, risk governance and operational resilience.
He said the reforms would also deepen collaboration with other financial regulators and key industry bodies to safeguard systemic stability and promote a resilient, trusted and future-ready financial sector.
“These reforms reflect our vision – a banking sector that is modern, competitive, resilient and capable of supporting Ghana’s long-term growth agenda,” Dr Asiama stated.
Touching on recent monetary policy developments, Dr Asiama noted that the MPC, at its November meeting, reduced the policy rate by 350 basis points to 18 per cent, supported by easing inflation, improved external buffers and a stable outlook into the first half of 2026.
He observed that the global economy remained fragile despite easing inflation and improving financial conditions, but Ghana’s economy was showing resilience, with provisional data indicating real GDP growth of 5.5 per cent in the third quarter of 2025.
Dr Asiama said inflation had declined to 6.3 per cent, returning to the medium-term target band, while strong export performance, led by gold and cocoa, had strengthened the external position and supported stability of the cedi.
On fiscal performance, the Governor said consolidation efforts remained on track under the IMF-supported programme, providing a foundation for sustained macroeconomic stability.
He commended banks for demonstrating improved liquidity, capital strength and profitability, adding that the BoG would remain firm, fair and transparent in its engagement with the industry to ensure a stronger and more resilient financial system capable of supporting Ghana’s long-term development.
BY KINGSLEY ASARE
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