The Bank of Ghana (BoG) has announced plans to introduce a Credit Risk Management Directive and a Liquidity Coverage Ratio Directive to strengthen the banking sector's resilience. This decision was made during the 132nd Monetary Policy Committee meeting held on September 23-24, 2026. The directives aim to improve the sector's credit-risk frameworks and liquidity management.
The Credit Risk Management Directive will complement the Non-Performing Loan Notice issued last year. It will cover credit origination, administration, monitoring, measurement, and recovery. This move is expected to enhance banks' credit-risk frameworks. The Liquidity Coverage Ratio Directive will introduce a prudential benchmark for banks' liquidity. It will require banks to maintain high-quality liquid assets to withstand significant liquidity stress over a 30-day period.
During a post-MPC engagement with heads of banks in Accra on October 6, 2026, Governor Dr. Johnson Pandit Asiama disclosed these plans. He stated that the Monetary Policy Committee unanimously decided to maintain the Monetary Policy Rate at 14.0 percent. The committee assessed the balance of risks to inflation and growth as broadly balanced.
Headline inflation increased modestly to 5.0 percent in August from 4.6 percent in July. This rise was due to the pass-through from utility tariff adjustments and elevated crude oil prices. However, core inflation and inflation expectations continued to moderate. Real GDP grew by 6.0 percent in the second quarter of 2026. This growth was driven mainly by the services and industry sectors.
The average lending rate of the banking sector declined significantly to 15.9 percent in August 2026. This represents a decrease from 24.2 percent in the corresponding period of 2025. Credit to the private sector grew by 35.5 percent in August 2026. This growth is compared to 13.3 percent a year earlier.
The external sector continues to provide resilience, with the trade surplus increasing to US$8.85 billion. This increase is from US$6.69 billion in the corresponding period of 2025. Gross international reserves stood at US$12.0 billion. This amount is equivalent to 4.5 months of import cover, as of September 22, 2026.
The Bank of Ghana is engaging banks on the results of its macroprudential stress tests. These tests assess the resilience of the banking sector under severe but plausible economic and financial scenarios. The Bank is also working on the implementation of the Cyber and Information Security Directive. It will continue to strengthen supervisory expectations around technology, customer-fund safeguarding, and third-party risks.
Key points
- The Bank of Ghana will introduce a Credit Risk Management Directive and a Liquidity Coverage Ratio Directive.
- The Monetary Policy Rate was maintained at 14.0 percent.
- The banking sector's average lending rate declined to 15.9 percent in August 2026.
