Support real economy as inflation remains under control - BoG to banks

Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, has called on banks to leverage Ghana’s improving macroeconomic conditions to support productive sectors of the economy and drive long-term growth.

Speaking at the post-130th Monetary Policy Committee (MPC) engagement with heads of banks in Accra on Tuesday, June 16, Dr Asiama said the banking sector must increasingly focus on its core role of financial intermediation and support for businesses as the country consolidates recent economic gains.

“As we sustain stable macroeconomic conditions, let me reiterate that the banking industry must increasingly turn its attention to its fundamental role of financial intermediation and support for productive economic activity,” he said.

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According to the Governor, the long-term sustainability of Ghana’s financial system depends on the strength of the real sector, including manufacturing, agriculture, services and export-oriented businesses.

“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,” he stated.

Dr Asiama noted that Ghana’s economy continues to demonstrate resilience despite global uncertainties.

He revealed that the Composite Index of Economic Activity expanded by 12.6 per cent in March 2026, compared with 2.3 per cent during the same period last year, supported by strong growth in private sector credit, industrial activity, trade and consumption.

He also highlighted improvements in inflation, fiscal performance and the external sector.

According to him, headline inflation remained relatively low at 3.7 per cent in May 2026, while the country recorded a fiscal surplus of 0.1 per cent of GDP in the first quarter of the year.

The Governor further disclosed that Ghana’s Gross International Reserves had increased to US$14.4 billion, providing import cover of 5.7 months.

On the banking sector, Dr Asiama said industry performance continued to strengthen, with total assets growing by 26.6 percent to GH¢493.9 billion.

He added that the Capital Adequacy Ratio improved significantly to 22.3 per cent from 17.5 percent a year earlier, while the Non-Performing Loan (NPL) ratio declined from 23.6 percent to 18.0 percent.

“These developments demonstrate the resilience of the banking sector and reflect the collective efforts undertaken by all institutions represented here today,” he said.

However, he cautioned banks against complacency, stressing that elevated credit risks remain a concern and calling for stronger credit underwriting standards and improved loan recovery processes.

“Let us therefore leverage this stability and work together to channel capital into productive sectors, empower entrepreneurs, support exports, deepen regional integration, and strengthen public confidence in our financial system,” Dr Asiama concluded.