Governor of the Bank of Ghana, Dr. Johnson Asiama, has called on financial institutions to prepare for a major transformation in the country’s banking landscape, as the central bank targets lending rates below 10% within the next four years.

Speaking at the Chartered Institute of Bankers (CIB) Ghana post-Monetary Policy Committee (MPC) roundtable on August 5, 2025, Dr. Asiama emphasized the urgent need for banks to shift away from relying heavily on government securities and begin lending more actively to productive sectors of the economy.

Dr. Asiama challenged banks to reconsider their current business strategies, which largely focus on high-yield treasury bills and central bank instruments, rather than supporting real sector growth.

“What are our banks going to do in the post-stabilisation phase?” he asked. “Are they prepared to lend at less than 10%? Are they ready to look beyond T-bills and high-yield BoG instruments? The era of high interest rates and passive investment is ending.”

He urged banks to embrace their core function of financial intermediation—mobilizing funds and channeling them into the private sector, particularly SMEs and agriculture—to support Ghana’s inclusive growth agenda.

Ghana’s current average lending rate stands at approximately 27.4%, making credit largely inaccessible for many businesses. However, with inflation declining and rates beginning to ease, the Bank of Ghana sees an opportunity to create a more favorable lending environment.

Dr. Asiama stressed that a stable macroeconomic climate must lead to tangible outcomes, including affordable credit, job creation, and economic transformation.

He also highlighted the importance of aligning financial services with national development priorities, including environmental sustainability.

“With inflation decelerating and interest rates on a downward path, this is a unique moment to support private sector growth, SMEs, agriculture—and above all—green financing,” he stated.

Concluding his remarks, Dr. Asiama called on the financial sector to serve as a catalyst, not a constraint, to Ghana’s growth.

“The financial sector must be the bridge, not the bottleneck. It’s time for our banks to step up, rethink their role, and align with the future of Ghana’s economy,” he said.