By Morkporkpor Anku
Accra, Oct. 7, GNA – The Bank of Ghana (BoG) has urged banks to strengthen credit risk management, fraud controls, cybersecurity and liquidity frameworks to safeguard the resilience of the financial sector.
Dr Johnson Pandit Asiama, the Governor, BoG, said the rapid expansion of private sector credit must be supported by sound underwriting standards and effective risk management frameworks to ensure sustainable growth.
At a gathering of Heads of Banks in Accra on Tuesday to discuss credit risk management and compliance with non-performing loans, he said the average lending rate of the banking sector declined to 15.9 per cent in August 2026, from 24.2 per cent in the corresponding period last year.
“The decline in lending rates, improved credit conditions and recovery in credit demand contributed to a strong rebound in private sector credit, which grew by 35.5 per cent in August 2026, compared with 13.3 per cent a year earlier,” he said
He said in real terms, credit growth reached 29 per cent, compared with 1.7 per cent over the same period last year.
Dr Asiama said the banking sector remained resilient, with total sector assets increasing on the back of robust deposit mobilisation and growth in other funding sources.
The sector was well-capitalised and asset quality had improved, but the non-performing loans (NPL) ratio remained elevated relative to regulatory thresholds, he said.
He urged banks to strengthen credit risk management and comply fully with NPL guidelines, saying the BoG would soon issue a credit risk management directive.
The directive would strengthen banks’ credit risk frameworks covering credit origination, administration, monitoring, measurement and recovery, he said.
Dr Asiama said the BoG would also issue a liquidity coverage ratio directive requiring banks to maintain adequate high-quality liquid assets to withstand significant liquidity stress over a 30-day period.
He urged banks to take seriously the findings of the BoG’s macro-prudential stress tests and strengthen areas of vulnerability identified through the exercises.
On fraud, the Governor urged banks to strengthen their fraud risk management systems through effective policies and controls to prevent, detect and deter fraudulent activities.
He said fraud functions should have direct and unrestricted access to Managing Directors or
Chief Executive Officers to ensure their independence and effectiveness, while personnel should have the requisite skills and professional certifications.
Dr Asiama said the BoG was consolidating its foreign exchange operational notices and guidelines into a comprehensive compendium, stressing that compliance with foreign exchange requirements remained non-negotiable.
He said the BoG was also strengthening oversight of cybersecurity, fintech and digital payments, while developing guidance on responsible use of artificial intelligence and governance of payment service providers.
The Governor said the BoG had launched the National Remittance and Diaspora Savings Strategy with the Ministry of Finance to turn remittances into investment opportunities, with implementation expected to begin in the first quarter of 2027.
GNA
Edited by Agnes Boye-Doe
Reporter: Morkporkpor Anku
Email: [email protected]