BoG Governor Urges Banks to Support Real Sector After Policy Rate Cut
By Praisebell Rosemond Larbi
The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has appealed to commercial banks to step up credit support to the real sector of the economy, particularly small and medium-sized enterprises (SMEs), following the recent reduction in the policy rate to 18 percent.
Speaking at an engagement with Chief Executive Officers of commercial banks after the latest Monetary Policy Committee (MPC) decision, Dr. Asiama stressed that the easing of monetary conditions must go beyond headline figures and translate into tangible financing for productive sectors of the economy. He noted that without increased lending to businesses that drive output, employment and value addition, the full benefits of the policy rate cut would not be realised.
According to the Governor, SMEs remain the backbone of the Ghanaian economy, accounting for a significant share of employment and contributing substantially to domestic production and income generation. Despite their importance, he observed that many SMEs continue to face challenges accessing affordable credit, which limits their ability to expand operations, invest in technology and create jobs.
“The recent reduction in the policy rate is intended to support economic activity. Banks must therefore support the real sector by extending credit to productive enterprises, especially SMEs, and also drive innovation that enhances financial access and inclusion across the economy,” Dr. Asiama said.
He emphasised that the central bank’s policy actions are designed to create a more supportive environment for lending and investment, particularly as Ghana works to consolidate macroeconomic stability and sustain its economic recovery. However, he cautioned that monetary easing alone would not be sufficient if commercial banks remain overly risk-averse or fail to pass on the benefits of lower policy rates to borrowers.
Dr. Asiama also urged banks to align their lending strategies with the country’s broader development priorities, including industrialisation, agriculture, manufacturing, and value-added services. He noted that increased financing to these sectors would not only support growth but also strengthen the resilience of the economy against external shocks.
In addition, the Governor encouraged financial institutions to leverage digital technologies and data-driven solutions to develop innovative financial products tailored to the needs of underserved segments, including SMEs, women-led businesses and enterprises in rural areas. He said deepening financial inclusion remains a critical pillar of sustainable and broad-based economic development.
“Innovation in banking is no longer optional. Digital tools, alternative data and new delivery channels can help reduce the cost of credit, improve risk assessment and bring more businesses into the formal financial system,” he added.
Dr. Asiama reaffirmed the Bank of Ghana’s commitment to maintaining a stable and predictable regulatory environment that supports responsible lending while safeguarding financial stability. He expressed confidence that closer collaboration between the central bank and commercial banks would help unlock private sector growth, boost job creation and strengthen confidence in the financial system.
The engagement forms part of the BoG’s ongoing efforts to ensure that recent policy measures translate into real economic impact, as Ghana seeks to accelerate growth and reinforce its recovery momentum.
