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The Bank of Ghana (BoG) is preparing to introduce new directives aimed at strengthening credit risk management and liquidity resilience across the country’s banking sector.
BoG Governor Dr Johnson Pandit Asiama announced the measures during a post-Monetary Policy Committee (MPC) engagement with heads of banks at Bank Square on Tuesday, October 6, 2026.
New credit risk framework for banks
Dr Asiama said the central bank will soon issue a Credit Risk Management Directive to complement the Non-Performing Loans (NPL) Notice introduced last year.
“The Directive will strengthen banks’ credit-risk frameworks, covering credit origination, administration, monitoring, measurement and recovery,” he said.
The new framework comes as private-sector lending continues to expand rapidly. Credit to the private sector grew by 35.5 percent in August 2026, compared with 13.3 percent during the same period a year earlier.
The Governor cautioned that the pace of credit expansion must be supported by appropriate underwriting standards and effective risk-management systems to prevent deterioration in banks’ asset quality.
“At the same time, as private sector credit expands rapidly, this growth must be supported by sound underwriting standards and effective risk-management frameworks,” Dr Asiama said.
BoG sets new liquidity benchmark
The central bank will also introduce a Liquidity Coverage Ratio (LCR) Directive, establishing a new prudential benchmark for banks’ liquidity management.
According to Dr Asiama, the directive will require banks “to maintain adequate high-quality liquid assets to withstand significant liquidity stress over a 30-day period.”
The measure is expected to strengthen banks’ ability to withstand short-term liquidity pressures and improve the resilience of the financial system.
The Governor said the BoG is also closely monitoring asset quality across the sector. Although the NPL ratio has declined significantly, he noted that it remains elevated compared with regulatory thresholds.
Lending rates decline as private-sector credit expands
The new risk measures come amid a significant decline in average lending rates and stronger real credit growth.
The average lending rate fell to 15.9 percent in August 2026 from 24.2 percent a year earlier, while real private-sector credit growth increased to 29 percent.
The developments point to stronger credit conditions for businesses and other private-sector borrowers, while also placing greater importance on effective credit assessment and monitoring as banks expand their loan portfolios.
Banks urged to strengthen digital risk controls
Dr Asiama also urged banks to reinforce their fraud controls, cybersecurity measures and technology-risk management as digital financial services continue to expand.
The call reflects the growing exposure of financial institutions to technology-driven risks alongside the rapid adoption of digital banking and payment services.
With the new credit and liquidity directives, the BoG is seeking to strengthen banks’ internal controls and risk-management frameworks while ensuring that expanding credit does not undermine financial stability.
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