The Bank of Ghana (BoG) is preparing to strengthen regulatory and risk-management requirements for commercial banks as the rapid recovery in private-sector lending raises the need for stronger safeguards against deteriorating asset quality and financial-sector vulnerabilities.
Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, announced the impending measures on Tuesday, October 6, 2026, during a post-Monetary Policy Committee (MPC) engagement with chief executive officers and heads of banks at Bank Square in Accra.
The meeting followed the 132nd MPC meeting held from September 23 to 24, 2026, at a time when Ghana’s economy is showing stronger signs of recovery but continues to face significant domestic and external risks.
Dr Asiama said the engagement was intended to deepen cooperation between the central bank and the banking industry as Ghana consolidates recent macroeconomic stabilisation gains and seeks to position the financial sector to support sustainable and inclusive economic growth.
According to the Governor, the global economic environment has become increasingly difficult since February, characterised by persistent geopolitical tensions, elevated energy prices and uncertainty surrounding global trade and financing conditions.
Despite these pressures, global growth has remained relatively resilient, with the International Monetary Fund maintaining its 2026 growth projection at 3.0 percent.
However, Dr Asiama cautioned that renewed geopolitical tensions and the possibility of a strong El Niño later in the year could worsen the global economic outlook.
He noted that some major central banks had already adopted more cautious policy positions, with some beginning to raise interest rates. Such developments, he said, could result in higher global yields and tighter financing conditions for emerging and frontier economies such as Ghana.
Ghana’s economy maintains momentum
Despite the difficult external environment, the Governor said Ghana’s domestic economy had demonstrated considerable resilience.
Real Gross Domestic Product (GDP) expanded by 6.0 percent in the second quarter of 2026, driven largely by the services and industry sectors. Although the growth rate was below the 6.6 percent recorded during the corresponding period of 2025, Dr Asiama said underlying economic activity remained strong.
Consumer and business confidence also remained positive, which he attributed to the relatively stable macroeconomic environment and improved expectations about the country’s growth prospects.
Inflation, however, recorded a modest increase, rising from 4.6 percent in July to 5.0 percent in August 2026. The increase was attributed largely to the pass-through effects of utility tariff adjustments and higher crude oil prices.
Despite the increase in headline inflation, the Governor said core inflation and inflation expectations continued to moderate, while headline inflation remained below the lower boundary of the medium-term target band of 8 percent, plus or minus 2 percentage points.
Against this backdrop, the MPC unanimously maintained the Monetary Policy Rate at 14.0 percent, assessing the risks to inflation and economic growth as broadly balanced. uThe Committee expects inflation to gradually return to the target band in the coming quarters.
Lending rates fall sharply
One of the major developments highlighted by the Governor was the significant decline in commercial banks’ average lending rates.
The average lending rate of the banking sector fell to 15.9 percent in August 2026, from 24.2 percent during the same period in 2025. The reduction in lending rates, combined with an easing in banks’ credit stance and renewed demand for credit, has contributed to a significant rebound in private-sector financing.
Private-sector credit grew by 35.5 percent in August 2026, compared with 13.3 percent a year earlier. In real terms, credit growth reached 29.0 percent, compared with only 1.7 percent over the same period in 2025.
The rapid expansion is likely to provide additional financing for businesses and economic activity, but the central bank is simultaneously warning banks that stronger lending must not come at the expense of prudent credit assessment and risk management.
BoG prepares new credit-risk directive
Dr Asiama said the Bank of Ghana remained encouraged by the resilience of the banking sector, noting that total banking-sector assets had increased, supported by stronger deposit mobilisation and growth in other funding sources.
He said the banking sector remained well capitalised and that asset quality had also improved, describing these developments as evidence of strengthening balance sheets and the industry’s contribution to economic activity.
However, the central bank remains concerned about non-performing loans (NPLs). Although the NPL ratio has declined significantly, the Governor said it remained elevated relative to regulatory thresholds.
Banks have therefore been directed to continue strengthening credit-risk management and comply fully with existing NPL guidelines.
Dr Asiama further warned that the rapid expansion of private-sector credit must be backed by sound underwriting standards and effective risk-management systems.
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