The Bank of Ghana (BoG) has challenged commercial banks to expand lending to households, small businesses, and other productive sectors. This directive comes as Ghana experiences improving economic conditions.
BoG Governor, Dr. Johnson Pandit Asiama, stated that recent declines in inflation, relative stability of the cedi, and improved foreign reserves create favorable conditions. These factors, alongside strong private sector credit growth, should enable banks to support economic expansion. Dr. Asiama made this call during a post-Monetary Policy Committee (MPC) engagement with bank heads in Accra.
This push for increased lending aligns with Ghana's broader economic narrative of recovery and stabilization. The economy expanded by 6.4% in the first quarter of 2026, up from 6.2% in the same period of 2025. Inflation also fell to 4.6% in July from 5.3% in June, supported by slower food inflation and exchange rate stability. These indicators suggest a more robust environment for business investment and growth.
“Banks are not merely financial intermediaries; you are important business partners in the growth and transformation of the economy,” Governor Asiama stated. He urged banks to adopt innovative lending models, especially for small and medium-sized enterprises (SMEs). SMEs often struggle to access finance due to perceived risks.
The Governor stressed the need for banks to develop products tailored to the realities of businesses. This includes those operating in agriculture and related value chains. He suggested flexible repayment structures that match seasonal agricultural activities and business cash flows. This approach would help SMEs obtain suitable financing while managing lending risks effectively for banks.
This call comes against a backdrop of stronger credit growth in the economy. Private sector credit growth rose sharply to 41.2% in June 2026. This compares to 8.6% during the same period a year earlier. Real private sector credit growth stood at 34.1%, indicating significant expansion. However, Dr. Asiama noted that some businesses, particularly agricultural SMEs, still struggle to secure adequate financing. Banks must deepen their understanding of these sectors and design appropriate lending solutions.
Dr. Asiama also commended banks for strengthening their financial positions. Total banking sector assets increased by 30.7% in June 2026. The sector’s Capital Adequacy Ratio (CAR), a measure of a bank's financial strength, improved significantly to 20.4% from 10.6% a year earlier. The Non-Performing Loan (NPL) ratio, which indicates the proportion of loans not being repaid, declined from 23.1% to 16.1% over the same period. These improvements provide a solid foundation for increased lending.
Despite these positive developments, the Governor cautioned banks to strengthen customer monitoring. He also urged them to address practices contributing to the increasing incidence of dud cheques. Additionally, banks must exercise greater caution when partnering with digital lending companies. They need to verify that Digital Credit Service Providers are properly licensed.
Beyond domestic lending, the Governor urged banks to develop financial products to attract more investment from Ghanaians living abroad. He noted that remittances are largely channelled through basic money-transfer services. Developing targeted diaspora investment products could convert these flows into longer-term financing for productive activities. This would also deepen financial inclusion across the country.
The BoG maintained the Monetary Policy Rate at 14% at its 131st MPC meeting in July 2026. Governor Asiama stated that the current policy stance remains appropriate. It aims to consolidate gains made on inflation while monitoring external risks. The progress made by the economy provides banks with a strong foundation to expand their lending activities responsibly.