The Governor of the Bank of Ghana, Dr Johnson Asiama, is urging financial institutions to prepare for a major shift in the banking sector as banks will soon be required to lend at rates below 10 percent.

According to him, it is time for local banks to move away from treasury bills and the central bank’s lending instruments, and instead provide a more secure foundation for private sector growth.

Ghana’s current lending rate hovers around 27.4%, making access to affordable credit a challenge for businesses and SMEs.

Meanwhile, the central bank is targeting a single-digit lending rate within the next four years.

Speaking at the Chartered Institute of Bankers (CIB) Ghana post-MPC roundtable discussion on August 5, 2025, Dr Asiama urged banks to refocus on credit expansion to productive sectors, particularly the private sector to stimulate economic growth.

“What are our banks going to do in the post-stabilisation phase? Are they prepared to lend at less than 10%? Are they ready to look beyond T-bills? Are they willing to move away from high-yield Bank of Ghana instruments? The era of high interest rates and passive investment by banks in government securities is ending. Banks must now begin to reimagine their business models, refocusing on intermediation, innovation, and credit expansion to productive sectors,” he stated.

Dr Asiama also emphasised the need to fully support key sectors of the economy, in line with the ongoing decline in inflation.

He noted that banks should prioritise and commit to green financing to support the government’s sustainability agenda.

“With inflation decelerating and rates on a downward path, there is a unique opportunity to support private sector growth, SMEs, agriculture, and above all, green financing,” he said.

“A stable macroeconomic environment is only meaningful if it translates into access to affordable credit, job creation, and inclusive economic transformation. The financial sector must be the bridge your industry must be the bridge, not the bottleneck.”





SP/MA

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