BoG Governor warns Climate risks threaten Financial Stability

By Prince Antwi June 30, 2026

Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, has described Ghana’s Sustainable Finance Roadmap as a significant milestone that will strengthen the country’s financial system, enhance climate resilience and position Ghana to attract long-term investment.

Speaking at the launch of the roadmap in Accra on Tuesday, June 30, 2026, Dr Asiama said sustainable finance has become a key pillar of financial regulation and national development, enabling institutions to better coordinate policies and mobilise capital for sustainable growth.

He noted that while climate change has accelerated the need for action, the roadmap goes beyond environmental concerns and reflects the broader need for financial systems to adapt to evolving global risks.

According to the Governor, climate change has become a financial stability issue, with extreme weather events such as flooding demonstrating how environmental shocks can affect banks, insurance companies and the wider economy.

“A changing climate now bears directly on financial stability,” he said, explaining that climate-related risks are increasingly reflected in asset values, loan collateral and insurance claims.

Dr Asiama stressed that these challenges affect every segment of Ghana’s financial sector, including banking, insurance, securities and pensions, making collaboration among regulators essential.

“No single regulator can manage these risks alone,” he said, adding that a coordinated approach is necessary to build a more resilient and sustainable financial ecosystem.

The Governor also reflected on the Bank of Ghana’s sustainability journey, which began in 2015 with the establishment of the Sustainable Banking Principles Steering Committee and culminated in the introduction of the Sustainable Banking Principles in 2019.

He noted that all 23 commercial banks in Ghana have adopted the framework, integrating environmental and social risk management into their operations.

According to him, implementation has steadily improved, with compliance rising to 73 per cent by 2025, supported by development partners including the International Finance Corporation (IFC) and the Swiss State Secretariat for Economic Affairs (SECO).

He added that new policy instruments, such as the Climate-Related Financial Risk Directive, are helping financial institutions strengthen their ability to identify, assess and manage climate-related financial risks, further reinforcing the resilience of Ghana’s financial system.