Accra: The Governor of the Bank of Ghana (BoG), Dr. Johnson Pandit Asiama, has urged banks to intensify their support for the real sector of the economy. He emphasized that the long-term sustainability of Ghana's financial system relies significantly on the growth of productive sectors such as agriculture, manufacturing, services, and exports.
According to Ghana Web, while Ghana has made substantial progress in achieving macroeconomic stability, financial institutions must now capitalize on these gains to foster economic growth, create jobs, and support businesses. Dr. Asiama highlighted these points at the post-130th Monetary Policy Committee (MPC) engagement with Heads of Banks in Accra, pointing out that stable macroeconomic conditions, declining interest rates, and advances in financial technology present opportunities for banks to expand their contributions to national development.
Dr. Asiama stated that the banking industry should refocus on its essential role of financial intermediation and support for productive economic activity. He stressed the importance of a vibrant manufacturing sector, competitive agriculture, efficient services, and thriving export-oriented businesses in generating sustainable credit demand, quality assets, employment, and economic prosperity.
The MPC decided to maintain the Monetary Policy Rate at 14 percent after assessing that risks to inflation and economic growth were broadly balanced. However, Dr. Asiama noted that recent global developments, particularly geopolitical tensions, are being closely monitored due to their potential impact on inflation and economic activity.
A significant change announced by the Governor was the replacement of the dynamic Cash Reserve Ratio (CRR) framework with a uniform reserve requirement of 20 percent, to be maintained entirely in domestic currency. This measure, effective from June 4, 2026, aims to improve liquidity management, strengthen monetary policy transmission, and enhance the development of the domestic financial market.
Dr. Asiama also provided an update on the economic performance, noting that the Composite Index of Economic Activity grew by 12.6 percent in March 2026, compared to 2.3 percent in the same period last year. Despite a slight increase in headline inflation from 3.2 percent in March to 3.7 percent in May, core inflation continued to decline, indicating subdued underlying price pressures.
The Governor highlighted that prudent fiscal management and expenditure controls resulted in a fiscal surplus of 0.1 percent of Gross Domestic Product during the first quarter of the year. Improvements were also noted in the external sector, with a current account surplus of $3.1 billion and Gross International Reserves increasing to $14.4 billion, which equates to 5.7 months of import cover.
In the banking sector, Dr. Asiama reported that total industry assets expanded by 26.6 percent to GHS493.9 billion, while the Capital Adequacy Ratio improved to 22.3 percent from 17.5 percent a year earlier. Additionally, the Non-Performing Loan ratio declined from 23.6 percent to 18 percent, reflecting stronger asset quality and improved resilience within the sector.
Despite these gains, Dr. Asiama cautioned banks against complacency and urged them to strengthen credit underwriting standards, improve loan recovery efforts, and comply fully with prudential regulations. He also called on banks to develop innovative financial products, provide business advisory services, and establish export support initiatives to assist Ghanaian businesses in accessing regional and international markets.
He reaffirmed the Bank of Ghana's commitment to working closely with industry players to build a resilient, inclusive, and globally competitive financial sector capable of supporting the country's development aspirations.