The Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, has urged banks to strengthen their credit risk management systems as lending to the private sector continues to record strong growth.
Dr Asiama said private sector credit grew 35.5 percent in August 2026, up from 13.3 percent in the same period in 2025.
In real terms, credit growth stood at 29.0 percent, up from 1.7 percent a year earlier, while the average lending rate declined significantly from 24.2 percent to 15.9 percent.
He said the improvement in lending conditions reflected the easing of domestic financial conditions, an improved credit stance among banks and a recovery in demand for credit from businesses and other private-sector actors.
Speaking at a post-Monetary Policy Committee engagement with heads of banks in Accra on Tuesday, October 6, 2026, Dr Asiama said the expansion in private-sector credit must be matched with sound underwriting standards and effective risk management systems.
He noted that although the non-performing loan ratio had declined significantly, it remained elevated relative to regulatory thresholds.
The Governor disclosed that the Bank of Ghana would soon issue a Credit Risk Management Directive to complement the Non-Performing Loans Notice issued last year.
According to him, the directive would strengthen banks’ systems for credit origination, administration, monitoring, measurement and recovery, while helping to ensure that the current expansion in lending remains sustainable.
Dr Asiama also urged banks to take fraud risks seriously and strengthen their internal controls to prevent, detect and deter fraudulent activities.
He said the fraud function within banks should have direct and unrestricted access to the managing director or chief executive officer to ensure its independence and effectiveness.
He further highlighted growing cyber, technology and fintech-related risks, saying the digitalisation of financial services had brought significant benefits but also increased operational and cybersecurity vulnerabilities.
He said the Bank of Ghana would continue working with banks to strengthen customer-fund protection, technology controls and third-party risk management.
Dr Asiama said the current economic environment presented both opportunities and challenges, with progress in inflation, fiscal consolidation, exchange-rate stability and financial-sector resilience providing a stronger foundation for sustainable growth.
He therefore called on banks to keep “resilience, prudence and innovation” at the centre of their operations. He pledged the Bank of Ghana’s continued collaboration with the banking sector to strengthen Ghana’s financial system and support economic transformation.
Source: Ghana/otecfmghana.com/Francis Appiah
