BoG to introduce new credit risk, liquidity directives for banks

The Bank of Ghana (BoG) is set to introduce new directives aimed at strengthening credit risk management and liquidity resilience across the banking sector. Governor Dr Johnson Pandit Asiama announced the measures at the Post-Monetary Policy Committee (MPC) engagement with heads of banks at Bank Square on Tuesday, October 6, 2026. Dr Asiama said the central bank would soon issue a Credit Risk Management Directive, which will complement the Non-Performing Loans (NPL) Notice issued last year. “The Directive will strengthen banks’ credit-risk frameworks, covering credit origination, administration, monitoring, measurement and recovery,” he said. GoldBod set to sell dollars to banks twice a week According to the Governor, the move is necessary as private-sector lending continues to expand rapidly, with credit to the private sector growing by 35.5 percent in August 2026, compared with 13.3 percent a year earlier. He cautioned that the growth must be supported by proper risk controls. “At the same time, as private sector credit expands rapidly, this growth must be supported by sound underwriting standards and effective risk-management frameworks,” Dr Asiama said. The BoG will also introduce a Liquidity Coverage Ratio Directive, which will establish the first prudential benchmark for banks’ liquidity. The Governor said the directive would require banks “to maintain adequate high-quality liquid assets to withstand significant liquidity stress over a 30-day period.” Dr Asiama also disclosed that the central bank was closely monitoring asset quality, noting that although the NPL ratio had declined significantly, it remained elevated relative to regulatory thresholds. Meanwhile, the average lending rate fell to 15.9 percent in August 2026, from 24.2 percent in August 2025, while real private-sector credit growth rose to 29 percent. The Governor urged banks to strengthen fraud controls, cybersecurity and technology-risk management as digital financial services continue to expand. FKA/MASource: www.ghanaweb.com
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