By Jibril Abdul Mumuni
Accra, Jan. 26, GNA – Mr Victor Yaw Asante, the Managing Director of FirstBank Ghana, says the banking industry is poised for a significant reduction in loan defaults as the downward trend in interest rates enhances loan repayment.
He said financial institutions favour lower interest rates because they directly correlate with improved borrower repayment capacity.
The MD said this at the FirstBank Ghana 2026 Health Walk held at the bank’s Head Office in Accra on Saturday.
The walk, which saw the participation of staff, customers, and stakeholders, forms part of activities marking the bank’s three decades of operations in the Ghanaian financial space.
“We as a bank are happier when interest rates drop. When rates go down, it means people will not default. Their businesses become more viable, and their ability to pay back is higher,” he said.
The Managing Director’s remarks come on the back of a consistent easing cycle by the Bank of Ghana (BoG).
Recent data from the BoG indicates that the Monetary Policy Rate (MPR), which stood at 27.7 percent in late 2024, has been aggressively trimmed to 18.0 percent as of November 2025.
Analysts project a further decline to approximately 15.0 percent by mid-2026.
Mr Asante said the development had made credit more accessible to Small and Medium-sized Enterprises (SMEs), while predicting a further drop in the prime rate with the Monetary Policy Committee (MPC) scheduled to meet in the coming weeks.
“I suspect there will be a further drop. The central bank has done a very good job, and we expect that to translate into lower overnight rates and prime lending rates, yielding more gains for the consumer,” he said.
He emphasised the bank’s commitment to being a trusted partner to businesses by offering relevant products that matched the current economic climate.
Mr Asante said the “You First” tagline of the bank remaind the core of its operations reflecting the bank’s 30-year journey.
He noted that the next three decades would be characterized by digital prominence and aggressive innovation to meet evolving customer needs.
“The next 30 years is about more branch-based banking integrated with customer-centricity and convenient digital facilities that help people to manage both their personal and business lives,” he added.
Addressing rumours regarding a potential listing on the Ghana Stock Exchange (GSE), Mr. Asante explained that while the bank was already listed via its parent company on the Nigerian Exchange, a local listing remained a possibility within the next two years as it sought to expand its capital base.
GNA
Edited by Agnes Boye-Doe