By Issah Olegor
At a post-MPC engagement on Wednesday, 18 February 2026, Dr. Johnson Pandit Asiama, Governor of the Bank of Ghana, addressed CEOs and heads of banks, highlighting the need for structural reform in the banking sector following the central bank’s recent policy measures.
Governor Asiama welcomed participants to the engagement, emphasizing that the forum allows financial leaders to confront risks openly and align expectations.
He noted that 2025 had seen improved macroeconomic conditions, including real GDP growth of 6.1% in the first three quarters and broad-based disinflation, with inflation falling to 3.8% in January 2026—the lowest since the adoption of inflation targeting.
The MPC’s decision in January to reduce the Monetary Policy Rate by 250 basis points to 15.5% was highlighted as part of a transition from tight monetary conditions toward supporting private sector credit growth.
According to Asiama, money market and lending rates are now declining, signaling the gradual transmission of easing to the real economy.
The Governor revealed that a thematic review of banks’ business models over the past year had identified key structural considerations. While the sector remains profitable, financial intermediation is modest, with loans representing less than 20% of total assets. Asset concentration in sovereign and central bank instruments is high, and net interest income continues to account for approximately 68% of profitability.
Dr Asiama warned that heavy reliance on net interest income increases sensitivity to interest rate cycles and sovereign exposures.
He encouraged diversification into transactional banking, trade services, payments, treasury, and other fee-based activities to ensure earnings resilience in a normalising rate environment.
The Governor acknowledged improvements in non-performing loans but noted that credit quality remains above benchmark levels. As banks expand lending, he stressed the importance of maintaining underwriting discipline and robust sectoral risk assessment.
He announced that business model analysis would now be integrated into supervisory assessments to identify emerging risks early.
On operational risk, Asiama noted that 87% of banks maintain fully continuous, 24/7 monitoring through Security Operations Centres.
However, he highlighted that gaps in monitoring by a few institutions could increase systemic vulnerability, calling for coordinated efforts across the sector to strengthen cyber resilience.
Governor Asiama underscored the importance of structural reforms beyond balance sheets. The recently passed Bank of Ghana (Amendment) Act, 2025, reinforces operational independence, transparency, and accountability. Similarly, the Virtual Asset Service Providers Act has established a regulatory perimeter for digital assets, with the Bank guiding its operationalisation to ensure that virtual assets interact responsibly with the banking system.
The Bank has also inaugurated Steering and Technical Committees to promote greater bank listings on the Ghana Stock Exchange, emphasizing that listing strengthens governance, broadens ownership, deepens transparency, and anchors banks in long-term domestic savings.
Concluding his remarks, Asiama stressed that while macroeconomic stability has been restored, the banking sector must now focus on durability. He called for stronger business models, broader ownership, deeper intermediation, disciplined innovation, and sound governance, committing the Bank of Ghana to remain a fair and forward-looking partner in supporting the long-term financial and economic transformation.
The post-MPC engagement reaffirmed the central bank’s commitment to moving from crisis management toward building a structurally resilient, diversified, and digitally prepared banking sector in Ghana.
