BoG Governor warns banks against complacency despite strong performance

Bank of Ghana (BoG) Governor, Dr Johnson Pandit Asiama, has warned banks not to become complacent despite great improvements in the performance of the banking sector.

Dr Asiama issued the caution during a bi-monthly meeting with heads of banks in Accra on June 16, 2026, where he outlined economic trends, regulatory reforms, and emerging risks.

“Nevertheless, we must not become complacent. Elevated credit risks remain a concern, and banks must continue to strengthen credit underwriting standards, improve recovery processes, and comply fully with regulatory requirements aimed at reducing non-performing loans to tolerable prudential targets,” he said.

The Governor said the domestic economy continued to show resilience amid global uncertainty, with positive indicators recorded across several sectors.

He noted that the Composite Index of Economic Activity expanded by 12.6 per cent in March 2026, compared to 2.3 per cent during the same period last year, driven by strong growth in private sector credit, industrial activity, consumption and trade.

Dr Asiama also highlighted gains within the banking industry, saying total sector assets increased by 26.6 per cent to GH¢493.9 billion.

According to him, the industry’s Capital Adequacy Ratio improved to 22.3 per cent from 17.5 per cent a year earlier, while the Non-Performing Loan ratio declined from 23.6 per cent to 18 per cent.

He, however, stressed that banks must intensify efforts to support productive sectors of the economy rather than rely solely on favourable macroeconomic conditions.

“As we sustain stable macroeconomic conditions, let me reiterate that the banking industry must increasingly turn its attention to its fundamental role of financial intermediation and support for productive economic activity,” he stated.

Dr Asiama said the long-term sustainability of the financial system depended on a vibrant real sector supported by manufacturing, agriculture, efficient services and export-oriented businesses.

He also urged financial institutions to take advantage of declining interest rates and technological advancements to better serve customers.

“I therefore urge banks to leverage the gains from macroeconomic stability, declining interest rates, and advances in financial technology to develop innovative products that meet the evolving needs of households and businesses,” he said.

The Governor further encouraged banks to position themselves as strategic partners by offering business advisory services, supporting entrepreneurship and facilitating market access.

He said the Bank of Ghana would continue working with stakeholders to build a resilient, inclusive and globally competitive financial sector that advances Ghana’s long-term economic prosperity.