Governor of the Bank of Ghana, Dr. Johnson Asiama, has called on commercial banks to revise their business models in response to evolving economic conditions. Speaking at the inauguration of the Bank of Ghana Chair in Economics and Finance at the University of Ghana, Legon, Dr. Asiama emphasized that the era of persistently high interest rates is no longer sustainable.

“It is now time for banks to begin reviewing their strategies—not only to protect profit margins but also to better serve the broader economy,” he stated.

The Governor highlighted the need for the banking sector to become a driving force for national growth through more targeted and productive lending to Ghanaian enterprises.

The establishment of the BoG Chair at the University of Ghana forms part of the central bank’s broader strategy to promote long-term commitment to research, knowledge development, and the nurturing of a new generation of financial leaders. According to Dr. Asiama, this initiative strengthens the longstanding partnership between the Bank and the University, founded on shared national development goals.

As part of the Chair’s mandate, the Bank of Ghana will identify high-performing graduates with outstanding potential in economics, finance, and public policy. These individuals will benefit from scholarships, internships, and opportunities for policy immersion at top global institutions.

Dr. Asiama also hinted at plans to launch joint research initiatives in areas such as inflation targeting, exchange rate management, digital finance, regulatory frameworks, and the transmission of monetary policy.

On macroeconomic management, the Governor reiterated the importance of transparent and credible exchange rate regimes. “We must be honest about the divergences in our system and work towards frameworks that are rules-based and trusted,” he said.

He further stressed the balancing act central banks must perform in the modern era, maintaining both price and financial stability while responding to increasing government reliance on domestic financing.

At a recent Monetary Policy Committee press briefing, Dr. Asiama reaffirmed his concerns about high interest rates, noting that they are beginning to decline and showing strong signs of further reduction.

Managing Global Pressures

Addressing the impact of global shocks, Dr. Asiama stated, “While we cannot always prevent global disruptions, we can control how we respond.”

He cited the Cedi’s 42% appreciation year-to-date and Ghana’s over US$11 billion in international reserves as evidence of effective policy coordination between the central bank and fiscal authorities, supported by the ongoing IMF programme.