On October 6, 2026, Bank of Ghana Governor Dr. Johnson Pandit Asiama led a Post-Monetary Policy Committee (MPC) Engagement with Heads of Banks at the Bank Square. The meeting, attended by the First Deputy Governor Dr. Zakari Mumuni and the Second Deputy Governor Mrs. Matilda Asante-Asiedu, focused on recent monetary policy and macroeconomic developments. Discussions also centered on key regulatory and supervisory priorities for the banking sector. This engagement highlights the Bank of Ghana's efforts to maintain a stable financial system.
Dr. Asiama emphasized that resilience, prudence, and innovation must be at the forefront of the banking sector's collective agenda. He urged banks to remain vigilant and committed to responsible banking and sound risk management. This, he believes, will further strengthen the financial system and support the transformation of the Ghanaian economy. By prioritizing these aspects, banks can contribute to a stable and thriving economy.
The Governor noted that domestic financial conditions have continued to ease, supporting the transmission of monetary policy to various market segments, including the credit market. As of August 2026, the average lending rate of the banking sector declined significantly to 15.9 percent, down from 24.2 percent recorded in the corresponding period of 2025. This decline in lending rates has contributed to a more favorable credit environment.
The easing of credit conditions and recovery in credit demand have led to a strong rebound in private sector credit. According to Dr. Asiama, 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, up from 1.7 percent over the same period last year. This growth in credit is a positive indicator for the economy.
Dr. Asiama expressed encouragement by the continued resilience of the banking sector. Total banking sector assets have increased, supported by robust deposit mobilization and growth in other funding sources. The sector remains well-capitalized, with improved asset quality. These developments reflect the strengthening of the sector and the collective efforts of banks to improve their balance sheets and support economic activity.
The Bank of Ghana's efforts to engage with banks and promote responsible banking practices are crucial in maintaining financial stability. By working together, the Bank of Ghana and the banking sector can address potential risks and challenges. This collaboration will help ensure that the financial system remains robust and supportive of economic growth.
The Post-Monetary Policy Committee engagement is part of the Bank of Ghana's ongoing efforts to promote a stable and thriving financial system. By prioritizing resilience, prudence, and innovation, the banking sector can continue to support the transformation of the Ghanaian economy. The Bank of Ghana will likely continue to monitor the sector and provide guidance to ensure that banks remain committed to responsible banking practices.
Key points
- Dr. Johnson Pandit Asiama urges banks to prioritize resilience, prudence, and innovation.
- The banking sector's average lending rate declined to 15.9 percent in August 2026.
- Credit to the private sector grew by 35.5 percent in August 2026.
