Bank of Ghana Governor Johnson Asiama has urged the banking sector to broaden access to credit to support private sector-led growth in the economy.
Speaking at a meeting Wednesday with chief executives of commercial banks in Accra, the Ghanaian capital, Asiama said the recent decision to lower the benchmark policy rate by 300 basis points shows a careful move away from just protecting the economy to also encouraging growth, as macroeconomic conditions improved.
According to him, the central bank could further reduce its lending rate going forward with a more favorable macroeconomic environment. “For the banking sector, this opens a window to reexamine lending strategies, broaden access to credit, and support private sector-led growth, while still managing risks prudently,” Asiama said.
The governor noted that the banking sector remains a cornerstone of Ghana’s economic stability, with available data confirming that the sector is well-capitalized, liquid, and profitable, with a steady decline in non-performing loan ratios.
He said the developments in the sector reflect both an improving macroeconomic environment and enhanced credit underwriting standards the banks implemented in recent years. Asiama, however, cautioned the banks to do their lending with prudent risk management, ensuring that credit expansion does not compromise the quality of their loan books.
Ghana’s central bank cut its benchmark lending rate by 300 basis points to 25 percent at the end of July amid falling inflation and improving macroeconomic fundamentals. Enditem
Source: Xinhua
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