Governor Dr. Johnson Asiama’s Opening Remarks – Post-MPC Engagement with Heads of Banks
Source: bank_of_ghana
Date: 2025-12-16

Post-MPC Engagement with Heads of Banks Opening Remarks by Dr. Johnson Pandit Asiama Governor, Bank of Ghana Bank Square, Bank of Ghana | December 16, 2025| Distinguished Captains of our banking industry, Colleagues, Ladies and gentlemen, Good afternoon. 1. It is always a privilege to meet with you following our Monetary Policy Committee deliberations. These moments of engagement remind us that beyond macroeconomic indicators and policy instruments lies a shared mission – the service to the Ghanaian people and a collective responsibility to build a resilient, inclusive, and prosperous economy. 2. As we gather at the close of a defining year for our financial system, I am reminded of the first post-MPC engagement of my tenure, when I spoke candidly about the difficult road our banking sector had travelled. Confidence had been tested, uncertainty lingered, and the relationship between the Central Bank and financial institutions needed careful rebuilding. I made a simple pledge then: that we would restore trust, balance, and collaboration. Today, that pledge is evident in the tone of our dialogue, the clarity of expectations, and the shared sense that we are custodians of Ghana’s financial future. Recent Monetary Policy Developments 3. The results of our collective commitment are becoming evident across all major indicators. At its last meeting in November, the Monetary Policy Committee reduced the policy rate by 350 basis points to 18 percent. This decision was supported by the continued impact of our tight monetary policy stance, a strong build -up of external reserves, and a stable inflation outlook well into the first half of 2026. Global and Domestic Backdrop 4. Ladies and gentlemen, w e convene at a moment of cautious optimism in the global economy. While growth prospects have edged upward, the international environment remains fragile, shaped by lingering trade tensions and policy uncertainty. Notably, global inflation is easing, and financial conditions are becoming more supportive. Against this uneven global backdrop, Ghana’s economy is charting a confident path forward. Ghana’s Renewal: Strength Beyond Headwinds 5. Provisional data on real GDP growth for the third quarter (Q3), released by the Ghana Statistical Service (GSS) last week, reflects continued expansion by 5.5 percent. Although slightly lower than same quarter of the previous year, the performance shows resilience and adaptability of our productive sectors, while business and consumer confidence indicators for September remain buoyant. Restoring Price Stability: A Shared Achievement 6. One of the most significant milestones of the year has been the steady reversion of inflation to the medium-term target band, declining to 6.3 percent – levels not seen in several years, reflecting the combined impact of prudent monetary policy, disciplined fiscal management, and improved food supply conditions. More importantly, underlying inflation expectations are firmly re -anchored, providing a vital foundation for sustained growth, long -term investment, and renewed confidence among households and businesses. External Strength and Renewed Confidence 7. Ghana’s external sector has emerged as a pillar of resilience. Strong export performanc e, led by gold and supported by cocoa , delivering substantial trade surpluses and strengthening the current account position. Consequently, external buffers have rebuilt considerably, enhancing our ability to withstand future shocks. In tandem, t he cedi has responded positively, demonstrating renewed resilience. Fiscal Discipline 8. Fiscal consolidation remains firmly on course and aligned with the broader reform s under the IMF ECF programme. The policy direction ahead is clear – to protect hard-won stability and convert it into lasting economic progress. The Banking Sector: Anchoring Stability and Growth 9. At the heart of this progress stands the banking sector. After a period of significant strain, banks have demonstrated resilience, sound liquidity, improving capital strength, and renewed profitability. These gains reflect stronger governance, improved risk management, and a regulatory framework that continues to evolve toward a more forward -looking approach. 10. While challenges remain – particularly in asset quality – the commitment of banks to responsible risk management is evident. The Bank of Ghana will continue to work closely with the industry to safeguard stability and support sustainable credit growth. 11. Looking ahead, the Bank of Ghana will consolidate regulatory gains through strict enforcement, expanded training, and deeper engagement with the industry. The next phase of reforms will include: • New directives spanning stress -testing, recovery planning, and risk management to further enhance the sector’s resilience and alignment with global best practices. • Revised Risk-Based Supervisory Framework to strengthen forward-looking oversight by focusing on business risk, financial resilience, risk governance, and operational resilience. • Strengthened collaboration with financial regulators and key industry bodies to safeguard systemic stability and promote a resilient, trusted, and future-ready financial sector. These reforms reflect our vision – a banking sector that is modern, competitive, resilient, and capable of supporting Ghana’s long-term growth agenda. Conclusion 12. Colleagues, our task is to consolidate these gains by deepening financial intermediation, improving credit allocation, and strengthening governance. We call on banks to support the real sector, expand credit to productive enterprises, especially SMEs, and drive innovation that enhances access and inclusion, while managing risk. Let us turn this recovery into a financial system that is both stable and catalytic in shaping Ghana’s prosperity. 13. As we prepare to close the chapter on 2025, we must remember that this year was not the end of a journey, it was the beginning of a new one. The work ahead will demand more discipline, deeper collaboration, and a willingness to embrace innovation while preserving prudence. 14. The Bank of Ghana will remain a firm, fair, and transparent partner, supportive where necessary, uncompromising where stability is at risk. I am confident that with your continued partnership, we will deliver a stronger, more modern, more resilient financi al system, one capable of supporting Ghana’s transformation in the years ahead. 15. I thank you all for your partnership, your diligence, and your unwavering commitment to the financial stability and progress of our nation. Thank you, and God bless our homeland Ghana.