Bank of Ghana Governor, Dr. Johnson Pandit Asiama, has urged banks to increase lending and support to the real sector of the economy. He stated that the long-term sustainability of Ghana’s financial system depends on the growth of productive sectors like agriculture, manufacturing, services, and exports.
This directive follows significant progress in achieving macroeconomic stability. Financial institutions must now use these gains to stimulate economic growth, create jobs, and support businesses across the country. Stable macroeconomic conditions, falling interest rates, and advancements in financial technology provide avenues for banks to expand their contributions to national development.
This initiative fits into Ghana's broader economic narrative of transitioning from stability to sustained growth. Data indicates a Composite Index of Economic Activity growth of 12.6 percent in March 2026, a substantial rise from 2.3 percent a year earlier. Furthermore, the country recorded a fiscal surplus of 0.1 percent of Gross Domestic Product in the first quarter, reflecting prudent fiscal management. These figures indicate a conducive environment for increased private sector investment and lending.
Dr. Asiama emphasised the banking industry's core role during a meeting with Heads of Banks in Accra. He said, “The banking industry must increasingly turn its attention to its fundamental role of financial intermediation and support for productive economic activity.” He noted that vibrant manufacturing, competitive agriculture, efficient services, and thriving export businesses are vital for sustainable credit demand and economic prosperity.
Looking ahead, decision-makers will closely monitor banks' responses to this call for increased real sector support. The Bank of Ghana also announced a new uniform Cash Reserve Requirement (CRR) of 20 percent, effective June 4, 2026, to be held entirely in domestic currency. This measure aims to enhance liquidity management and strengthen monetary policy transmission. These developments are critical for investors and businesses evaluating Ghana's economic trajectory and the banking sector's role in its future.
The Governor also provided a positive outlook on the banking sector’s performance. Total industry assets expanded by 26.6 percent, reaching GHS 493.9 billion. The Capital Adequacy Ratio improved to 22.3 percent from 17.5 percent a year earlier, indicating enhanced financial strength. The Non-Performing Loan ratio decreased from 23.6 percent to 18 percent, signalling better asset quality. Despite these gains, Dr Asiama cautioned against complacency, urging banks to strengthen credit underwriting standards. He also called for improved loan recovery efforts and full compliance with prudential regulations. Banks are further encouraged to innovate financial products and offer business advisory services to support local enterprises.