The Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, has urged commercial banks to shift their focus from short-term stability to long-term structural strength as Ghana’s macroeconomic environment improves.
Addressing chief executives and heads of banks at a post-Monetary Policy Committee (MPC) engagement in Accra on Wednesday, Dr. Asiama stressed that the period of crisis management is over and the sector must now reposition for durability.
“Stability has been restored. The task ahead is to strengthen the underlying architecture of the banking sector,” he stated.
According to the Governor, a thematic review conducted by the central bank over the past year examined banks’ funding structures, asset allocation patterns, earnings composition and governance effectiveness under both baseline and stress scenarios.
“The review confirms that the sector remains viable and profitable,” he said. “At the same time, it highlights structural features that merit reflection as we move into a more normalised macroeconomic environment.”
One key finding was the industry’s continued heavy reliance on net interest income, which accounts for approximately 68 percent of profitability.
“There is nothing inherently problematic about net interest income,” Dr. Asiama noted. “However, a high dependence on it increases sensitivity to interest rate cycles and sovereign exposure dynamics.”
With interest margins expected to compress as rates normalise, he emphasised the need for diversification into more sustainable income streams such as transactional banking, trade services, payments, treasury operations and other fee-based activities that are less balance-sheet intensive.
The Governor also pointed out that financial intermediation remains modest, with loans accounting for less than one-fifth of total industry assets, while asset concentration in sovereign and central bank instruments remains elevated.
Although non-performing loans have declined, he cautioned that they remain above benchmark levels. As credit growth resumes, he urged banks to maintain strong underwriting standards.
“Stability must now translate into purposeful intermediation, supporting agriculture, manufacturing, SMEs, and value-adding sectors, without reintroducing asset quality pressures,” he said.
Business model analysis, he announced, will now become an embedded component of supervisory assessments to enable early identification of emerging risks.
On cybersecurity, Dr. Asiama disclosed that about 87 percent of evaluated banks maintain fully continuous 24/7 Security Operations Centre monitoring.
“This demonstrates a strong and commendable recognition of cyber risk as a central operational priority,” he said, while warning that institutions with limited monitoring coverage could expose the system to vulnerabilities.
Beyond balance sheet strength, the Governor highlighted ongoing institutional reforms, including the Bank of Ghana (Amendment) Act, 2025, which reinforces operational independence and strengthens transparency.
He also referenced the newly enacted Virtual Asset Service Providers Act, which establishes a regulatory framework for digital asset activities.
“Banks are not observers in this space,” he stressed. “We are not creating a parallel financial system; we are extending the perimeter of the existing one.”
Additionally, Dr. Asiama announced the inauguration of Steering and Technical Committees to encourage more banks to list on the Ghana Stock Exchange, noting that listing “broadens ownership, strengthens governance, deepens transparency, and anchors banks more firmly in domestic long-term savings.”
