Deepen support to real sector to promote growth of economy … Governor urges banks

Dr. Johnson Pandit Asiama, Governor of the Bank of Ghana (BoG), has called on the nation's banks to deepen their support for the real sector, emphasizing that the long-term health of Ghana's financial system hinges on the growth of productive industries like agriculture, manufacturing, services, and exports.

Speaking at a post-Monetary Policy Committee (MPC) meeting with bank heads in Accra, Dr. Asiama highlighted that while Ghana has achieved significant macroeconomic stability, financial institutions must now utilize these gains to foster economic growth, generate employment, and bolster businesses. He noted that stable economic conditions, falling interest rates, and advancements in financial technology create opportunities for banks to play a more substantial role in national development.

"The banking industry must increasingly turn its attention to its fundamental role of financial intermediation and support for productive economic activity," Dr. Asiama stated. He added that a robust manufacturing sector, competitive agriculture, an efficient services industry, and thriving export businesses are crucial for generating sustainable credit demand, quality assets, and overall economic prosperity.

The MPC has maintained the Monetary Policy Rate at 14 percent, assessing risks to inflation and growth as balanced. However, the central bank is closely monitoring global developments, particularly geopolitical tensions, for their potential economic impact. In a move to enhance liquidity management and monetary policy transmission, the BoG has replaced its dynamic Cash Reserve Ratio (CRR) framework with a uniform 20 percent requirement, effective June 4, 2026.

Dr. Asiama reported positive economic indicators, including a 12.6 percent growth in the Composite Index of Economic Activity for March 2026. Inflation remains under control, with headline inflation slightly rising to 3.7 percent in May from 3.2 percent in March, while core inflation continues to decline. The fiscal performance showed a surplus of 0.1 percent of GDP in the first quarter, and the external sector improved with a current account surplus of $3.1 billion and Gross International Reserves reaching $14.4 billion.

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The banking industry must increasingly turn its attention to its fundamental role of financial intermediation and support for productive economic activity. A vibrant manufacturing sector, competitive agriculture, efficient services sector and thriving export-oriented businesses are essential for generating sustainable credit demand, quality assets, employment and economic prosperity.