Governor urges banks to deepen financing for SMEs, agriculture
The Bank of Ghana has urged banks to expand productive lending by developing flexible financing products tailored to small and medium-sized enterprises (SMEs), particularly in agriculture. The post Governor urges banks to deepen financing for SMEs, agriculture appeared first on Ghana Business News .
Dr Johnson Asiama, the Governor of the Bank of Ghana, has called upon banks to expand lending to small and medium-sized enterprises (SMEs), with a particular focus on agricultural businesses. During a meeting with bank executives in Accra, the Governor emphasized the need for banks to create flexible financing products that cater to the unique needs of these businesses.
He stressed that the current economic environment, characterized by growing demand for credit and easing financial conditions, presents an opportunity for banks to increase lending to productive sectors. Dr Asiama highlighted the challenges faced by SMEs, particularly in agriculture, in accessing finance, as banks often view them as high-risk borrowers.
To address this, he urged banks to develop financing products that align with the seasonal nature of agricultural activities and synchronize loan repayment schedules with borrowers' cash flows. The Governor also encouraged banks to enhance customer engagement, provide financial education, and improve cheque processing to boost compliance and trust in banking services.
Additionally, Dr Asiama advocated for banks to strengthen due diligence on digital lending platforms and ensure the licensing of digital credit service providers before partnering with them. Finally, he called for the development of investment products tailored to the Ghanaian diaspora to channel remittances into savings and productive investments, thereby deepening financial integration and supporting economic growth.
Written by urgent.news from Ghana Business News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
