Bank of Ghana Governor Urges Banks to Fund Entrepreneurs and Support Exports
Bank of Ghana Governor Dr Johnson Pandit Asiama has called on commercial banks to channel capital into productive sectors, warning that the country’s recent economic stability must be transformed into broad-based prosperity or risk becoming a temporary reprieve.
Speaking at a meeting with bank executives on Tuesday, Dr Asiama outlined a vision in which the banking sector moves beyond traditional lending to become a strategic partner for Ghanaian entrepreneurs and export-oriented businesses. “The challenge before us is not just to preserve stability but to transform stability into prosperity for our people,” he told the gathering.
The Governor’s call comes against a backdrop of improving macroeconomic indicators. The Composite Index of Economic Activity expanded by 12.6 per cent in March 2026, compared with just 2.3 per cent in the same period a year earlier. The banking sector itself has shown strong recovery, with total assets growing by 26.6 per cent to GH₵493.9 billion in April 2026.
Asset quality has also improved markedly. The industry’s capital adequacy ratio rose to 22.3 per cent from 17.5 per cent a year earlier, while the non-performing loan ratio fell to 18.0 per cent from 23.6 per cent, signalling a healthier lending environment.
The broader economic picture reinforces the case for optimism. Ghana posted a fiscal surplus of 0.1 per cent of GDP in the first quarter of 2026, exceeding programme targets. The current account surplus reached US$3.1 billion, driven by strong gold and cocoa export earnings and stable remittance inflows. Gross international reserves rose to US$14.4 billion, providing 5.7 months of import cover.
Inflation, however, remains a watchpoint. It increased slightly to 3.7 per cent in May from 3.2 per cent in March, marking the first consecutive rise since December 2024. Core inflation, excluding food and energy, continued to decline, suggesting that underlying inflationary pressures remain subdued. The Monetary Policy Committee kept the policy rate at 14 per cent, aiming to balance price stability with economic recovery.
Dr Asiama urged banks to develop innovative financial products that meet the evolving needs of households and businesses, and to complement their lending with business advisory services, market-access support, and export clinics as part of their corporate social responsibility. He also announced that the Bank of Ghana would develop innovative investment-linked remittance products to mobilise diaspora capital for business expansion, infrastructure development, and long-term capital formation.
The Governor’s remarks align with the central bank’s recent push to rebrand all 147 rural banks as community banks, a sweeping reform aimed at deepening financial inclusion and bringing banking services closer to underserved communities across the country.
On the regulatory front, Dr Asiama called on banks to strengthen credit underwriting standards, improve loan recovery processes, and ensure full compliance with prudential requirements. He stressed the importance of actively supporting Ghana’s third-round Financial Action Task Force mutual evaluation, noting that the outcome would directly affect correspondent banking relationships, investor confidence, and the country’s international financial standing.
The Governor’s message is clear: the era of macroeconomic stabilisation must give way to an era of productive investment. Whether the banking sector heeds that call will determine whether Ghana’s current economic gains translate into jobs, exports, and shared prosperity.
Image Source: GHANA BUSINESS NEWS
