The Bank of Ghana (BoG) has challenged commercial banks to convert the recent recovery in credit growth into greater support for businesses, particularly small and medium-sized enterprises (SMEs) and players in the agricultural sector.
The central bank said banks could play a more significant role in Ghana’s economic transformation by moving beyond conventional lending approaches and developing financing products that reflected the realities of the businesses they served.
Governor of the BoG, Dr Johnson Pandit Asiama, made the call during a meeting with Chief Executive Officers and Heads of Banks in Accra on Wednesday.
He said the improving economic environment presented an opportunity for the banking sector to increase financing to productive sectors and strengthen its contribution to economic growth.
According to Dr Asiama, many SMEs, especially those operating in agriculture, continued to struggle to secure financing because their businesses were often perceived by banks as high-risk.
He therefore urged banks to develop flexible credit products that took into account the seasonal nature of agricultural activities.
Loan repayment arrangements, he said, should be structured around the cash-flow cycles of borrowers rather than applying rigid repayment schedules that could place unnecessary pressure on businesses.
He said such tailored financing could help SMEs expand operations and strengthen activities across agricultural value chains.
Dr Asiama noted that financial conditions had eased significantly and that compressed interest margins had contributed to a strong recovery in credit creation.
With private-sector credit recording substantial growth, he said, banks now had greater scope to direct additional resources towards productive activities capable of generating jobs, investment and economic value.
The Governor also called for stronger relationships between banks and their customers, including improved financial education to promote responsible banking practices and compliance.
He expressed concern over the rising incidence of returned cheques and urged banks to ensure that customers properly utilised approved overdraft facilities or funds available in linked accounts before cheques were returned.
He said stronger monitoring and customer engagement would help reduce repeated occurrences and restore confidence in cheques as a reliable payment instrument.
On the growing digital lending market, Dr Asiama cautioned banks to conduct thorough due diligence before partnering with digital credit providers.
He urged banks to verify the licensing status of such operators with the BoG, noting that the central bank had stepped up action against unlicensed digital lending businesses and was publishing information on entities operating without the required approvals.
The Governor also identified the Ghanaian diaspora as an untapped source of investment capital and encouraged banks to develop specialised financial products for Ghanaians living abroad.
He said remittances should not be limited to money-transfer services but could be channelled into savings and productive investments through appropriate banking products.
According to Dr Asiama, the BoG’s assessment showed that the banking industry had relatively few ready-made investment products specifically designed around the needs of the Ghanaian diaspora.
He encouraged banks to explore investment programmes, mobile money solutions and digital remittance platforms that could help deepen financial integration and direct more diaspora funds into productive activities.
Dr Asiama assured the banking industry that the BoG would continue to provide the regulatory and policy framework needed to maintain a sound, resilient and growth-oriented financial sector.
He called for sustained collaboration between the regulator and banks to address emerging challenges while creating more opportunities for businesses, households and the wider Ghanaian economy.
