The Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, has directed banks to take deliberate steps to increase lending to small and medium enterprises (SMEs), particularly those operating along the agricultural value chain.
He stated that improved financial conditions, stable exchange rates and lower inflation had created the opportunity for banks to increase credit to productive sectors of the economy.
Addressing heads of banks in a meeting at the Bank Square, the head office of the BoG, in Accra yesterday, Dr Asiama explained that stronger lending to SMEs, particularly those in the agricultural value chain, would help translate the improved economic environment into broader economic growth.
He said that banks must deepen their understanding of the businesses and sectors they served and design loan solutions that reflected their peculiarities.
“Such an approach would enable SMEs to access financing on terms that better reflect the realities of their businesses,” he said.
“I therefore encourage you to deepen your understanding of the businesses as well as sectors that you serve, particularly the unique dynamics of agriculture and its associated value chains,” Dr Asiama added.
The meeting
The meeting brought together the leadership of the BoG and chief executives of commercial banks to discuss macroeconomic stability, monetary policy transmission, liquidity management and regulatory compliance.
It followed the 131st Monetary Policy Committee (MPC) meeting and provided a platform for banks to review the MPC’s decisions and assess their implications for lending strategies, liquidity management and credit growth.
Also at the meeting were central bank executives, managing directors and chief executives of commercial banks, as well as representatives of industry associations such as the Ghana
Association of Banks, to strengthen collaboration and promote stability in the banking sector.
Banking sector strong
Dr Asiama explained that private sector credit grew by 41.2 per cent in June 2026, up from 8.6 per cent a year earlier, while real private sector credit growth reached 34.1 per cent, reflecting easing financial conditions.
Real private sector credit growth measures the increase in credit given by banks to businesses and households after adjusting for inflation.
He stressed that many SMEs continued to struggle to secure financing because banks perceived them as relatively high-risk despite improved economic conditions and stronger credit growth.
The Governor urged the banks and other financial institutions to develop flexible credit solutions and align repayment schedules with the seasonal nature and cash-flow patterns of agricultural businesses.
He stated that the banking sector had continued to strengthen, with total assets increasing by 30.7 per cent in June 2026, supported by growth in deposits and shareholders’ funds.
He explained that the capital adequacy ratio had risen to 20.4 per cent from 10.6 per cent a year earlier, indicating improved solvency in the sector.
The Governor added that the non-performing loans ratio (NPLs) had also declined to 16.1 per cent from 23.1 per cent over the same period.
“These developments, colleagues, reflect the collective efforts undertaken by the institutions represented in this room here today.
“As banks, you are not merely financial intermediaries; you are important business partners in the growth and transformation of the economy,” he said.
Regulatory compliance
Dr Asiama stated that banks needed to strengthen their monitoring systems and customer education to address increased incidents of returned cheques and improve compliance.
He added the BoG had intensified efforts to tackle unlicensed digital lending and urged banks to verify the licensing status of digital credit providers before entering partnerships with them.
After the opening remarks by the Governor, the meeting continued in camera.
