The Bank of Ghana has urged commercial banks to deepen lending to small and medium-sized enterprises (SMEs), particularly businesses operating within the agricultural value chain, as improving economic conditions drive a sharp rebound in private sector credit.
Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, said private sector credit grew by 41.2% in June 2026, compared with 8.6% a year earlier, while real private sector credit growth reached 34.1%.
He said the development reflected easing financial conditions, declining interest rates and growing confidence in the domestic economy.
Dr Asiama made the call on Wednesday, August 12, 2026, when he addressed chief executive officers and heads of banks at a post-Monetary Policy Committee (MPC) engagement at the Bank of Ghana.
According to him, the improved macroeconomic environment presented an opportunity for banks to expand credit to productive sectors and ensure that economic gains translate into increased business activity and job creation.
“Despite the improved economic environment and the growing demand for credit, many SMEs, particularly those in the agricultural value chain, still struggle to access finance because banks continue to perceive these businesses as relatively high-risk,” he said.
Call for innovative lending
The Governor urged banks to develop more flexible credit products that take into account the seasonal nature of agricultural businesses.
He said loan repayment schedules should be aligned with the timing and cash-flow patterns of borrowers, arguing that such an approach could allow SMEs to obtain financing on terms that better reflect the realities of their operations while helping banks manage lending risks.
Dr Asiama stressed that banks should deepen their understanding of the businesses and sectors they serve rather than operate solely as traditional financial intermediaries.
“You are not merely financial intermediaries; you are important business partners in the growth and transformation of the economy,” he told the bankers.
The call comes against the backdrop of stronger economic indicators including real Gross Domestic Product (GDP) growth of 6.4% in the first quarter of 2026, headline inflation of 4.6% in July 2026, and a Monetary Policy Rate at 14% as at July.
The Bank said the decision would allow it to assess emerging risks, particularly those arising from geopolitical tensions and their potential impact on the domestic economy.
Banking sector strengthens
Dr Asiama also highlighted improvements in the banking sector, saying total banking sector assets increased by 30.7% in June 2026, supported largely by growth in deposits and shareholders’ funds.
Banks’ Capital Adequacy Ratio rose to 20.4%, compared with 10.6% a year earlier, while the Non-Performing Loan ratio declined from 23.1% to 16.1% over the same period.
He described the developments as evidence of continued strengthening of the sector and acknowledged the efforts of banks to improve their financial position.
BoG steps up action against unlicensed digital lenders
The Governor further disclosed that the central bank had intensified measures against unlicensed digital lending operators.
He said the Bank had begun weekly publication of entities identified as providing digital credit services without the required approval, with relevant law enforcement and regulatory agencies taking further action against non-compliant operators.
Banks were consequently urged to conduct enhanced due diligence on Digital Credit Service Providers before entering into partnerships or other business relationships with them.
Banks urged to tap diaspora investment potential
The Governor also challenged banks to develop dedicated investment products for Ghanaians in the diaspora.
He said a recent BoG survey showed that banks generally lacked ready-made investment products specifically designed for the diaspora, resulting in remittances flowing mainly through basic transfer channels instead of being channelled into structured savings, bonds and other investment vehicles.
He urged banks to broaden their offerings to include bank-led investment products, mobile money solutions and digital remittance platforms.
The BoG, he said, would continue working with stakeholders towards developing a national remittance strategy aimed at increasing the proportion of remittance inflows directed towards savings, investment and productive economic activity.
