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Post-MPC Engagement with Heads of Banks Opening Remarks by Dr Johnson Pandit Asiama Governor, Bank of Ghana Bank Square, Bank of Ghana | Wednesday, 12 August 2026 Chief Executive Officers and Heads of Banks, Deputy Governors, Colleagues of the Bank of Ghana, Distinguished Ladies and Gentlemen, Good morning and thank you for your continued engagement with the Bank of Ghana.
I welcome you all to this meeting – a meeting which has become an important platform for open dialogue, collective reflection, and coordinated action towards building a resilient, sound, inclusive, and growth-oriented financial system.
Let me begin my remarks by highlighting some of the key outcomes of the recently concluded Monetary Policy Committee (MPC).
Recent Monetary Policy and Macroeconomic Developments Ladies and gentlemen, t he MPC held its 131st regular meeting in July 2026 to assess recent economic developments and the risks to the outlook for inflation and growth.
The Committee noted that the domestic economy continues to demonstrate considerable resilience, notwithstanding a complex and uncertain global environment.
The renewed escalation of the conflict in the Middle East and closure of the Strait of Hormuz have triggered renewed instability in energy markets and heightened uncertainty around global trade and financing conditions.
Crude oil prices have rebounded while supply chain disruptions are expected to slow the pace of disinflation across several countries.
Despite these external challenges, our domestic economy continues to perform well.
Real GDP grew by 6.4 percent in the first quarter of 2026, compared with 6.2 percent in the corresponding quarter of 2025, driven largely by the services and industry sectors.
The Bank's Composite Index of Economic Activity also points to sustained and broad-based momentum in economic activity, while the confidence surveys show positive consumer and business sentiments, supported by optimism about growth prospects, subdued inflation, and declining lending rates.
Headline inflation declined to 4.6 percent in July 2026 from 5.3 percent in June, reflecting slower food inflation and a relatively stable exchange rate, which helped to contain imported price pressures.
Notab ly, inflation remains well below the lower bound of the medium -term target band of 8±2 percent.
Against this backdrop, the MPC unanimously maintained the Monetary Policy Rate at 14.0 percent.
The Committee judged that the current policy stance remains appropriate to steer inflation into the medium -term target band while allowing time to assess the evolving geopolitical environment and its potential impact on the domestic economy.
Interest Rates and Private Sector Credit Ladies and gentlemen, financial conditions have eased significantly.
In the money market, interest rates have continued to moderate across various market segments.
These developments are beginning to translate into stronger credit flows to the private sector.
Private sector credit grew by 41.2 percent in June 2026, compared with 8.6 percent a year earlier, while real private sector credit growth stood at 34.1 percent.
This is a significant development.
Fiscal and Debt Developments Fiscal discipline has also continued to provide an important anchor for macroeconomic stability.
Fiscal performance in the first quarter of 2026 broadly reflected strong expenditure restraint, notwithstanding revenue shortfalls, resulting in better -than-targeted balances on a cash basis.
The continued commitment to expenditure restraint, revenue mobilisation, prudent debt management, and fiscal discipline will be critical to preserving debt sustainability, strengthening investor confidence, and reducing fiscal risks to the macroeconomic outlook.
Banking Sector Developments I am particularly encouraged by the continued strengthening of the banking sector.
Total banking sector assets increased by 30.7 percent in June 2026, mainly supported by growth in deposits and shareholders' funds.
Banks' solvency has improved significantly, with the Capital Adequacy Ratio increasing to 20.4 percent in June 2026 from 10.6 percent a year earlier.
Asset quality has also strengthened, with the Non- Performing Loan ratio declining to 16.1 percent from 23.1 percent over the same period.
These developments reflect the collective efforts undertaken by the institutions represented here today.
External Sector Developments The external sector has continued to provide an important source of resilience.
In the first half of 2026, the trade surplus increased to US$8.8 billion from US$5.8 billion in the corresponding period of 2025, supported by strong gold and cocoa export earnings.
The current account surplus also expanded to US$5.1 billion from US$4.1 billion over the same period.
These developments, together with a larger capital account surplus, strengthened the overall balance of payments position.
Gross International Reserves stood at US$12.9 billion at end-June 2026, equivalent to 5.0 months of import cover.
In the foreign e xchange market, the cedi continued to show relative stability.
Supporting Productive Economic Activity Ladies and gentlemen, i nflation has declined significantly, the exchange rate has remained relatively stable, financial conditions have eased considerably, and interest margins have become increasingly compressed.
Against this backdrop, we are beginning to see a strong rebound in credit creation.
However, despite the improved economic environment and the growing demand for credit, many SMEs, particularly those in the agricultural value chain, still struggle to access finance because banks continue to perceive these businesses as relatively high-risk.
As banks, you are not merely financial intermediaries; you are important business partners in the growth and transformation of the economy.
I therefore encourage you to deepen your understanding of the businesses and sectors you serve, particularly the uni que dynamics of agriculture and its associated value chains.
This should include developing innovative and flexible credit products that recognise the seasonal nature of agricultural activities and align loan repayment schedules with the timing and pattern of borrowers’ cash flows.
Such an approach would enable SMEs to access financing on terms that better reflect the realities of their businesses, support banks to manage risk more effectively, while ensuring that the benefits of the improved macroeconomic environment translate into broader economic activity and job creation.
Regulatory and Supervisory Matters Distinguished colleagues, before I conclude my remarks, allow me to touch briefly on a few important regulatory and supervisory matters.
First, the Bank of Ghana continues to observe increased incidences of dud cheques and instances of non- compliance.
Banks are therefore encouraged to properly utilise approved overdraft facilities or available funds in linked accounts , where permitted under existing arrangements, before returning cheques unpaid.
Banks are further urged to strengthen their monitoring mechanism and intensify customer engagement and education to improve compliance, reduce repeat offences, and promote confidence in the use of cheques as a payment instrument.
Second, the Bank of Ghana has intensified efforts to address the growing incidence of unlicensed digital lending activities.
As part of these efforts , the Bank has commenced the weekly publication of entities identified as providing digital credit services without the requisite approval from the Bank of Ghana.
Relevant law enforcement and regulatory agencies are also taking further action to facilitate the removal of non- compliant operators from the market.
Banks are encouraged to exercise heightened due diligence when engaging Digital Credit Service Providers (DCSPs) and should verify the licensing status of such entities with the Bank of Ghana before establishing any partnership or business relationship.
Third, the Bank of Ghana recently conducted a survey of diaspora investment products across the banking industry.
The findings broadly indicate that banks currently do not have dedicated, off-the-shelf investment products specifically designed to meet the needs of the Ghanaian diaspora.
As a result, r emittances continue to flow largely through basic transfer channels, rather than being channelled into structured savings products, bonds, or other investment vehicles.
Bridging this gap will require coordinated efforts and collaboration among key stakeholders.
I want to urge banks to take advantage of the significant potential within the remittance space by broadening their offerings beyond traditional transfer services to include bank-led investment products, mobile money solutions, and digital remittance platforms.
This presents an opportunity to deepen financial intermediation and mobilise diaspora funds for productive investment in the Ghanaian economy.
The Bank of Ghana remains committed to working with relevant stakeholders to develop a national remittance strategy aimed at enhancing remittance flows into the economy and ensuring that a greater proportion of these inflows are channelled towards savings, investment, and broader economic development.
Conclusion Distinguished ladies and gentlemen, as I conclude my remarks, let me reiterate that the current economic environment presents us with a significant opportunity, but also a responsibility.
The progress we have made provides a solid foundation for sustainable economic growth.
Your institutions are well positioned to play a central role in translating these gains into tangible benefits for businesses, households, and the broader economy.
The Bank of Ghana, for its part, will continue to provide the regulatory and policy environment necessary to support a sound, resilient, and growth- oriented banking sector.
We will also continue to engage with you, listen to your concerns, and work collaboratively with the industry to address emerging challenges and unlock new opportunities.
I look forward to your continued partnership and constructive engagement as we work together to build a stronger banking sector and a more resilient Ghanaian economy.
Stakeholder Engagement Opening Remarks by Dr Johnson Pandit Asiama Governor, Bank of Ghana Eusbett Hotel, Sunyani | 5 August 2026 Distinguished members of the business community, Representatives of the Association of Bankers, Association of Ghana Industries (AGI) Ghana Union of Traders Association (GUTA) Ghana National Chamber of Commerce & Industry (GNCCI) Regional Branch of the Ghana Journalists Association, Bono Region Heads of Community Banks, Forex Bureaus and Microfinance institutions Invited guests, Ladies and gentlemen.
It is a great pleasure to be with you here in Sunyani.
Thank you all for making time to join us this evening.
Meetings like this are very important because they give us the opportunity to listen to one another.
The Bank of Ghana makes decisions that affect businesses, banks, traders, farmers, manufacturers and every Ghanaian.
It is therefore important that we hear directly from you about the challenges you face and share with you what we are doing to support a stable economy.
One of my priorities, since assuming office, has been to make the work of the Bank more open and transparent.
We want to build stronger relationships with our stakeholders and ensure that our policies respond to the needs of businesses and the people we serve.
This evening, I would like to briefly share where the economy stands today and the progress we have made over the past year.
Recent Monetary Policy Developments Ladies and Gentlemen, last month, the Monetary Policy Committee of the Bank of Ghana met to review developments in the economy, both here at home and around the world.
Although there is still uncertainty in the global economy, especially because of the conflict in the Middle East and rising oil prices, Ghana's economy has continued to perform well.
After carefully assessing our economic situation, the Committee decided to maintain the Monetary Policy Rate at 14.0 percent.
We took this decision because we believe it is the right balance.
It will help keep inflation under control while supporting businesses, investment and economic growth.
At the same time, it gives us the flexibility to respond to changes in the global economy if necessary.
Inflation One issue that concerns every Ghanaian is the cost of living.
The good news is that inflation remains low.
Although it increased slightly from 3.7 percent in May to 5.3 percent in June , it is still below the Bank of Ghana's target range.
The recent increase was mainly due to higher transport costs following the rise in world crude oil prices.
We believe this is temporary, and we will continue to monitor developments closely to ensure that inflation remains under control.
Low and stable inflation is good for everyone.
It helps families manage their household budgets, allows businesses to plan with greater confidence, and encourages investment.
The Economy is Growing I am also pleased to report that Ghana's economy continues to grow.
In the first three months of this year, the economy grew by 6.4 percent, compared with 6.2 percent during the same period last year.
This growth was driven mainly by the services and industrial sectors.
We are also seeing increased activity across many parts of the economy, including stronger bank lending to businesses, increased trade, higher industrial production and a recovery in tourism.
Just as importantly, businesses and consumers are becoming more confident about the future.
Lending rates have fallen, making it easier for businesses to access credit and invest.
Banking Sector Our banking sector also remains strong and stable.
Banks are well -capitalised, deposits continue to grow, and the quality of bank loans has improved.
Most importantly, banks are lending more to the private sector.
Credit to businesses and households grew by more than 41 percent in June this year, compared with about 9 percent a year earlier.
This means more businesses have access to financing to expand, create jobs and contribute to economic growth.
External Sector and the Cedi Our external sector has also remained resilient.
Exports of gold and cocoa have performed strongly, helping Ghana record a higher trade surplus during the first half of the year.
Although higher global oil prices have increased our import bill, Ghana continues to maintain strong foreign exchange reserves of about US$12.9 billion, enough to cover five months of imports.
These reserves give us a strong buffer against external shocks and help the Bank of Ghana support stability in the foreign exchange market.
The cedi experienced some pressure earlier this year because of global developments, particularly the conflict in the Middle East, but it has since recovered.
We remain committed to maintaining an orderly and well-functioning foreign exchange market.
Looking Ahead Ladies and Gentlemen, the progress we have made is encouraging, but we must not become complacent.
The global economy remains uncertain, and events beyond our borders can still affect us.
That is why the Bank of Ghana will continue to take decisions that protect the value of the cedi, keep inflation low, preserve financial stability and support sustaina ble economic growth.
Our goal is simple: to create an economic environment where businesses can grow with confidence, households can plan for the future, and every Ghanaian can share in the benefits of a stable and growing economy.
Conclusion Ladies and gentlemen, macroeconomic stability is not the responsibility of the Bank of Ghana alone – it is a partnership between policymakers, businesses, financial institutions, traders, farmers, and households.
When we understand one another, when we collaborate, and when we trust the process, the path to stability becomes clearer and more achievable.
I look forward to a productive conversation this evening.
Thank you once again for being here, and I am confident that our interactions today will strengthen our collective efforts to support growth and improve economic outcomes for the Bono Region and for Ghana as a whole.
Bank of Ghana and CIRIP Ghana Forum on Non-Performing Loans and Post- Commencement Financing Opening Remarks by Dr Johnson Pandit Asiama Governor, Bank of Ghana Bank Square | Tuesday, 4 August 2026 The Economic Adviser to the President, The President of the Chartered Institute of Restructuring and Insolvency Practitioners, Ghana, Representatives of the International Finance Corporation, The President of the Association of Chartered Certified Accountants, The President of the Institute of Chartered Accountants, Ghana, Chief Executive Officers and Senior Executives of Banks and Specialised Deposit-Taking Institutions, Licensed Insolvency Practitioners, Distinguished Participants, Ladies and Gentlemen.
I am pleased to open this forum, and I commend CIRIP Ghana for convening it.
The Bank of Ghana values its collaboration with the Institute, whose statutory mandate makes it an important partner in strengthening Ghana's business rescue framework.
The subject before us sits at the intersection of business rescue, credit risk management and financial stability.
Act 1015 gave Ghana a framework through which a distressed but viable business may be restructured rather than liquidated, and it gives post-commencement financing statutory priority.
The challenge is to translate that provision into financing that banks can responsibly provide.
Consider the decision facing a bank when a corporate borrower enters administration.
The existing facility is impaired.
Yet the business retains productive assets, customers and a viable core, and it has orders it could fulfil with working capital to buy inputs while its restructuring plan is implemented.
The bank must decide whether it is looking at a viable business in temporary distress or an unviable business postponing an inevitable failure.
That decision is difficult, for reasons this forum is well placed to address.
It captures the central question before us: How do we enable banks to support genuine recovery without concealing existing losses, weakening credit discipline or exposing depositors and the financial system to undue risk?
Ghana does not have to choose between liquidating every distressed business and relaxing standards to keep businesses alive.
A disciplined rescue framework can preserve viable businesses while protecting financial stability.
First, rescue must begin with a credible test of viability A business may be distressed without being fundamentally unviable.
A cash -flow shock, changing market conditions or a mismatch between receivables and obligations may place a sound business under severe pressure.
During restructuring it may need financing to retain employees, purchase inputs and complete existing contracts, without which productive capacity may be destroyed and creditors may recover less.
But the need for money is not evidence of viability.
Most distressed companies need money.
The first question is whether new money can reasonably restore the business to sustainable operations.
In the case I have described, the orders and remaining customers would be relevant but not sufficient.
The bank would still need to establish whether those orders are real and profitable, what caused the distress, whether the business can generate sustaina ble cash flow, and whether the plan addresses those causes rather than rescheduling their consequences.
A credible assessment must rest on reliable information, realistic assumptions, capable management, transparent governance and a clear path to recovery.
It should show how existing creditors will be treated and what shareholders and management will contribute, and it must be capable of independent scrutiny.
These are questions about information, priority and accountability.
A rescue plan that is to be treated as bankable must be built to be read by a credit committee.
Distress in a borrower is not a reason to stop assessing.
It is a reason to assess more carefully, and with greater urgency.
Second, new financing must support recovery without concealing existing losses The priority that Act 1015 confers on post-commencement financing materially improves the position of a lender advancing funds after administration begins.
But legal priority alone does not make a transaction prudent or bankable.
It does not make the cash flows appear, and it does not guarantee repayment.
If the company passes that test, the bank must determine how the new financing will be used, protected and monitored.
The facility may need to be ring -fenced for specified operating requirements, paid directly to approved suppliers, managed through control led accounts and repaid from identifiable proceeds.
It may require security, measurable milestones, regular reporting and exit triggers if the restructuring moves off course.
Equally, the old losses do not disappear because new financing has been provided.
The existing impaired facility must remain properly recognised, classified and provided for.
Calling an exposure post-commencement financing cannot convert a weak loan into a good one.
There can be no blanket exemption from IFRS 9 or from prudential requirements, and no automatic favourable classification simply because a facility was granted after administration commenced.
How new and legacy exposures should each be treated w ithin that discipline is one of the questions I am putting to this forum, and I do not intend to pre-empt it this morning.
We can have this conversation now, because the banking sector is in a stronger position than it was.
The industry's Non-Performing Loan ratio declined to 16.1 per cent in June 2026 from 23.1 per cent a year earlier, while the Capital Adequacy Ratio stood at 20.4 per cent.
Capital of that o rder is what gives a bank the room to take considered risk.
But that is progress, not sufficiency, and 16.1 per cent remains too high.
Our regulatory measures require each regulated institution to reduce its ratio to no more than 10 per cent by the end of December 2026, alongside stronger credit appraisal, Board - approved reduction plans, effective recovery functions and the write -off of fully provisioned exposures with no realistic prospect of recovery.
High non-performing loans tie up capital, raise recovery costs and restrict new credit, most severely for smaller and higher-risk borrowers.
Reducing them is therefore not merely a supervisory concern; it is part of Ghana's development agenda.
Post -commencement financing must reinforce that discipline, not work around it.
Third, Ghana needs a predictable framework, not case-by-case improvisation Banks, insolvency practitioners, borrowers and existing creditors need clarity on the evidence required, the controls that must be in place, the treatment of new and legacy exposures, and the consequences if a rescue fails.
This is why the Bank welcomes the collaborative work under way with CIRIP Ghana, the Ghana Association of Banks, the Institute of Chartered Accountants Ghana and other institutions.
Its purpose must be to convert the promise of Act 1015 into a coordinated, risk - sensitive and operational framework.
Such a framework must preserve clear roles.
The insolvency practitioner provides credible oversight, and management remains accountable for accurate information and execution.
Shareholders should not expect creditors or public institutions to carry losses while they retain the upside.
Lenders must apply sound credit judgement, existing creditors need clarity on how their rights may be affected, and the supervisor must protect prudential standards.
Complementary mechanisms may help, whether a secondary marke t in distressed assets or risk -sharing with development finance institutions, but neither should transfer predictable private losses onto the public balance sheet or sustain businesses with no prospect of recovery.
I invite this forum to focus on four practical questions: 1.
What evidence should establish that a distressed company remains commercially viable, and who should assess that viability independently?
How should post-commencement financing be structured, ring-fenced, monitored and repaid, including security, controlled accounts, milestones and exit triggers?