CIB Ghana hosts high-level forum on monetary policy, banking sector reform

The Chartered Institute of Bankers, Ghana (CIB Ghana), has convened a high-level policy seminar under the theme “Monetary Policy in Action: How MPC Decisions Shape Ghana’s Economy and Financial Sector,” to examine the practical implications of monetary policy on lending, inflation, and financial sector development.

In his welcome address, Mr. Benjamin Amenumey, President of CIB Ghana, reaffirmed the Institute’s commitment to advancing professional discourse on economic policy.

“Our mandate requires that we promote ethical and professional conduct while advancing the development of the banking profession. Fostering dialogue on monetary policy is a national duty,” he said.

Mr. Robert Dzato, Chief Executive Officer of CIB Ghana, presented findings from a recent study conducted by the Institute.

The research, which surveyed senior banking executives and policymakers, revealed strong stakeholder alignment with the Bank of Ghana’s (BoG) recent policy direction.

“Over 85 percent of respondents anticipated the latest rate cut. Stakeholders are calling for greater alignment between monetary policy actions and economic growth. We also noted concerns about liquidity constraints, credit risk, and volatility in funding costs,” he noted.

Delivering the keynote address, BoG Governor Dr. Johnson Asiama described Ghana’s ongoing disinflation process as real, sustained, and progressive, driven by coordinated, data-led interventions between the central bank and the Ministry of Finance.

Inflation fell from 25.8 percent in March to 13.7 percent in June 2025, while the Ghana Reference Rate (GRR) dropped from 32.5 percent in January to 27.7 percent in July. He highlighted the cedi’s more than 40 percent appreciation year-to-date as a key factor in reducing imported inflation and boosting purchasing power.

However, Dr. Asiama cautioned that banks must adapt to the evolving financial environment. “Banks have to start assessing themselves, especially their credit infrastructure. We will soon issue a notice on credit risk for banks, aligned with anticipated market changes,” he said.

Dr. Asiama urged commercial banks to transition from heavy investment in government securities toward core credit intermediation.

“The era of high interest rates and passive investment is ending. Banks must reimagine their business models, with greater focus on SMEs, agriculture, and green finance,” he stressed.

A panel discussion followed, drawing insights from leading industry figures.

Professor Festus Ebo Turkson, an external member of the Monetary Policy Committee (MPC), explained that recent rate cuts were the result of rigorous analysis.

“It is data driven. Every decision reflects a comprehensive review of economic conditions and risks,” he stated.

Dr. Humphrey Ayim Dake, President of the Association of Ghana Industries (AGI), expressed optimism about the shift in interest rate trends.

“We welcome the imminent low interest rate regime and expect to see more banking activity, meaning credit flowing into real businesses,” he remarked.

Mr. Joseph Obeng, President of the Ghana Union of Traders Association (GUTA), said the cedi’s appreciation against major currencies, particularly the US dollar, was already driving down the prices of imported goods.

“If the cedi holds steady, prices will continue to fall across the board,” he emphasized.

Ms. Ellen Ohene-Afoakwa, Managing Principal for Corporate and Investment Banking at Absa Bank, stressed that while banks are ready to lend, businesses must strengthen their operational and financial readiness. “Banks are willing to lend, but businesses must be in good shape to receive credit. Sound governance, discipline, and transparency are critical,” she advised.