Bank of Ghana Governor Dr Johnson Pandit Asiama has urged banks to maintain responsible lending practices and strong risk management as improving financial conditions drive a sharp recovery in credit to the private sector.
Dr Asiama made the call during a Post-Monetary Policy Committee (MPC) Engagement with heads of banks at the Bank Square on Tuesday, October 6.
The meeting, led by Dr Asiama alongside First Deputy Governor Dr Zakari Mumuni and Second Deputy Governor Mrs Matilda Asante-Asiedu, focused on recent monetary policy and macroeconomic developments.
Banking-sector regulation and supervision were also discussed, with the engagement providing an opportunity to assess key priorities for the industry.
“For the banking sector, this means that resilience, prudence and innovation must remain at the centre of our collective agenda,” Dr Asiama said.
He called on banks to remain vigilant and committed to responsible banking, while maintaining sound risk-management practices to reinforce the financial system and help support the transformation of the Ghanaian economy.
Dr Asiama said the easing of domestic financial conditions had continued to improve the transmission of monetary policy across different parts of the market, including the credit market.
The average lending rate in the banking sector fell to 15.9 percent in August 2026, down from 24.2 percent in the corresponding period of 2025.
He said the reduction in lending rates, combined with a more supportive credit stance from banks and a recovery in demand for loans, had helped produce a strong increase in private-sector credit.
Credit to the private sector grew by 35.5 percent in August 2026, compared with 13.3 percent a year earlier.
“In real terms, credit growth was 29.0 percent, compared with just 1.7 percent over the same period last year,” he said.
The governor also welcomed what he described as the banking sector’s continued resilience.
Total banking-sector assets increased during the period, supported by strong deposit mobilisation and growth in other sources of funding.
He said the sector remained well capitalised and that asset quality had improved.
“These are positive developments and reflect the strengthening of the sector as well as the collective efforts of banks to improve their balance sheets and support economic activity,” he said.
