Climate risks now a financial stability concern – BoG Governor

Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, says Ghana’s Sustainable Finance Roadmap marks a major step towards strengthening the country’s financial system, improving climate resilience, and attracting long-term global investment.

Speaking at the launch of the roadmap in Accra on Tuesday, June 30, 2026, the Governor said sustainable finance has become central to how regulators coordinate their work and mobilise capital for national development.

“Climate is one reason this work has become so urgent, but it is not the whole of it,” he said, stressing that financial systems must evolve to respond to emerging risks.

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He explained that climate change is no longer just an environmental issue but also a financial stability concern, noting that events such as flooding in Ghana have demonstrated how environmental shocks can affect the banking and insurance sectors.

“A changing climate now bears directly on financial stability,” he said, adding that these risks are already evident in asset values, lending collateral, and insurance claims.

According to him, climate-related risks cut across Ghana’s banking, insurance, securities, and pensions sectors, making coordination among regulators essential.

“No single regulator can manage these risks alone,” he stated, emphasising the need for collaboration to build a resilient and sustainable financial ecosystem.

The Governor highlighted the Bank of Ghana’s decade-long sustainability journey, which began with the establishment of the Sustainable Banking Principles Steering Committee in 2015 and the introduction of the Sustainable Banking Principles in 2019.

He noted that the chief executive officers of all 23 commercial banks adopted the framework, embedding environmental and social risk management into their operations.

He further disclosed that compliance levels have improved significantly, reaching 73 percent as of 2025, with support from development partners such as the International Finance Corporation (IFC) and the Swiss State Secretariat for Economic Affairs (SECO).

He added that recent policy tools, including the Climate-Related Financial Risk Directive, are helping financial institutions better identify, assess, and manage emerging climate-related risks.

ANAS/MA

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