By Stanley Senya
Accra, Oct. 22, GNA – The Chartered Institute of Bankers, Ghana (CIB Ghana) says lower interest rates are reaching borrowers of universal banks faster than customers of community and microfinance banks.
The findings were presented at the institute’s third Post-Monetary Policy Committee (Post-MPC) Policy Seminar, which examined monetary policy transmission, credit growth and non-performing loans (NPLs).
The seminar brought together the Bank of Ghana (BoG), the Ministry of Finance, banks, traders and industry representatives.
It followed the 132nd meeting of the BoG’s Monetary Policy Committee (MPC), which voted unanimously on September 24, 2026, to maintain the policy rate at 14 per cent.
Dr Mrs Ellen Ohene-Afoakwa, the President of the CIB Ghana Governing Council, said monetary policy affected financial markets, lending conditions, businesses and households, adding that its effectiveness depended on how changes in the policy rate were transmitted to the wider economy.
“As an institute, we recognise that credit growth and credit quality must move together,” she said.
She stressed on the need for banks to provide adequate credit to productive sectors while maintaining sound risk management and responsible lending practices.
On NPLs, Dr Ohene-Afoakwa called for greater emphasis on preventing bad loans rather than recovering them after they had deteriorated.
She also highlighted the Institute’s professional education and certification programmes, including non-interest banking, digital and environmental, social and governance certifications, as well as plans for a modern bankers’ house and business complex.
She said Ghana had secured the right to host the World Conference of Banking Institutes in 2028. The seminar formed part of activities leading up to the annual Bankers Week.
Dr Simon Harvey, Director of Research at the BoG, who represented the Governor, Dr Johnson Pandit Asiama, said changes in the policy rate did not immediately translate into lower borrowing costs because banks considered funding costs, credit risks, operating expenses and expected losses when pricing loans.
He said this transmission was neither automatic nor instantaneous, adding that monetary policy sought to anchor inflation expectations, maintain currency stability and safeguard the soundness of financial institutions.
Mr Robert Dzato, Chief Executive Officer of CIB Ghana, presented findings from the Institute’s September Pre-MPC sentiment survey, conducted among banks ahead of MPC meetings to provide industry insights to support the Committee’s work.
He said the survey showed a strong appetite among banks to lend, although the transmission of monetary policy varied across market segments.
Mr Dzato said most universal banks surveyed reported lending rates of between 10 and 15 per cent, while 46 per cent of community banks charged between 21 and 25 per cent, up from 36 per cent in July. Microfinance banks reported rates of about 31 to 40 per cent.
The survey found that 65 per cent of respondents had high confidence in the macroeconomic environment, while 80 per cent considered the current policy stance effective in containing inflation.
It also showed that 86 per cent of respondents expected the MPC to maintain the policy rate, while 70 per cent anticipated an increase in inflation over the following three months.
Mr Dzato said 71 per cent of the banks were confident of meeting the directive to reduce NPLs to 10 per cent by the end of 2026.
However, he cautioned that credit growth needed to be accompanied by stronger loan monitoring, recovery and risk mitigation to prevent a deterioration in asset quality.
GNA
Edited by Benjamin Mensah