Ghana's Central Bank Governor Urges Banks to Deepen Support for Real Economy

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

Speaking at a meeting with bank heads in Accra following the 130th Monetary Policy Committee (MPC) engagement, Dr. Asiama highlighted that while Ghana has achieved significant macroeconomic stability, financial institutions must now capitalize on these gains to foster economic growth, generate employment, and bolster businesses. He noted that stable macroeconomic conditions, declining interest rates, and advancements in financial technology create opportunities for banks to expand their 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 stressed that a vibrant manufacturing sector, competitive agriculture, an efficient services sector, and thriving export-oriented businesses are crucial for generating sustainable credit demand, quality assets, employment, and overall economic prosperity.

The MPC decided to maintain the Monetary Policy Rate at 14%, assessing that risks to inflation and economic growth were balanced at the time of the meeting. However, Dr. Asiama indicated that recent global developments, particularly geopolitical tensions, are under close observation for their potential impact on inflation and economic activity. The Bank has also replaced the dynamic Cash Reserve Ratio (CRR) framework with a uniform reserve requirement of 20%, to be held entirely in domestic currency, effective June 4, 2026. This change aims to improve liquidity management, strengthen monetary policy transmission, and enhance the domestic financial market.

Dr. Asiama reported positive economic performance, with the Composite Index of Economic Activity growing by 12.6% in March 2026, a significant increase from 2.3% in the same period last year. Inflation remains under control, with headline inflation slightly rising from 3.2% in March to 3.7% in May, while core inflation continues to decline. Prudent fiscal management has resulted in a fiscal surplus of 0.1% of GDP in the first quarter, and the external sector shows improvement with a current account surplus of $3.1 billion and Gross International Reserves reaching $14.4 billion, covering 5.7 months of import cover. Total industry assets in the banking sector have expanded by 26.6%.

“

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.