BoG Governor urges banks to expand lending as economic conditions improve

Bank of Ghana Governor Dr Johnson Asiama has called on financial institutions to capitalize on the improving macroeconomic conditions to boost lending to productive sectors of the economy. In an address to bank executives in Accra, Dr Asiama highlighted that stable exchange rates, falling inflation, eased financial conditions, and narrowed interest margins were creating a more conducive environment for businesses and financial entities.

He pointed out that these improvements have already sparked a revival in credit creation. Dr Asiama acknowledged that access to finance remains a significant hurdle for many small and medium-sized enterprises, especially those in the agricultural sector, where income and cash flows tend to be seasonal. He urged banks to create credit products that cater to the specific operational realities of businesses, particularly in agriculture, where aligned repayment structures could enhance credit accessibility while enabling banks to manage risks more effectively.

Dr Asiama emphasized that the benefits derived from the improved macroeconomic conditions should be transformed into increased productive activity, business expansion, and job creation.