Thursday, October 30, 2025
NewsCenta
  • Home
  • News
    • Politics
    • Local
    • Education
    • Agriculture
    • World
  • Entertainment
    • Celebrities
    • Music
  • Lifestyle
  • Business
  • Sports
  • Tech
  • Opinion
  • Newscenta Newspaper
No Result
View All Result
NewsCenta
  • Home
  • News
    • Politics
    • Local
    • Education
    • Agriculture
    • World
  • Entertainment
    • Celebrities
    • Music
  • Lifestyle
  • Business
  • Sports
  • Tech
  • Opinion
  • Newscenta Newspaper
No Result
View All Result
NewsCenta
No Result
View All Result

BoG to issue new banking supervision framework — Dr Asiama

Central bank moves to strengthen financial stability and oversight mechanisms

NewsCenta by NewsCenta
October 7, 2025
in Business
0
BoG banking supervision
Share on FacebookShare on Twitter

The Bank of Ghana (BoG) has announced plans to issue new exposure drafts covering Liquidity Risk Management, Interest Rate Risk in the Banking Book, Stress Testing, and Recovery Planning, as part of a comprehensive effort to align Ghana’s banking regulation and supervision with international best practices.

Governor of the central bank, Dr. Johnson Asiama, disclosed this at a high-level meeting with Chief Executives of commercial banks in Accra, where he also urged financial institutions to further reduce lending rates to support private sector growth and job creation.

You might also like

BoG Cedi@60

BoG launches “Cedi@60” 

October 28, 2025
Ghana Cedi strength

Ghana Cedi @60: A journey of strength, struggles, and resilience

October 28, 2025

He emphasised that the recent cuts in the Monetary Policy Rate (MPR) should be reflected in commercial lending rates to help boost access to credit, particularly for small and medium-scale enterprises (SMEs) — the backbone of Ghana’s economy.

“While the central bank has reduced its policy rate by over six percentage points in recent months, lending rates in the banking sector have remained relatively high,” Dr Asiama said.

“The Monetary Policy Committee voted to cut the rate by 350 basis points to support disinflation. This is the third rate cut in 2025, reflecting our confidence that inflation will remain within the medium-term target band.”

Lending rate cuts to stimulate growth

The Governor underscored that lowering borrowing costs would be essential to sustaining Ghana’s post-recovery growth momentum, improving private sector confidence, and deepening financial inclusion.

“The central bank stands ready to act decisively if risks emerge, including possible tariff adjustments, but we expect further improvement as banks realign their pricing models,” he added.

Dr. Asiama assured industry leaders of BoG’s commitment to maintaining macroeconomic stability and strengthening collaboration with commercial banks to enhance the efficiency of credit delivery and the resilience of the banking sector.

Strengthening prudential oversight

In addition to the forthcoming exposure drafts, the BoG has rolled out several key directives in 2025 to fortify prudential regulation, including the Bancassurance Directive, the Large Exposures Directive, and the Guidelines on Credit Concentration Risk Management.

The new risk management frameworks, Dr Asiama said, form part of a broader strategy to ensure that Ghana’s financial system remains robust, transparent, and well-positioned to handle external shocks.

Latest industry data show encouraging trends: the Capital Adequacy Ratio (CAR) has risen to 17.7%, while Non-Performing Loans (NPLs) have declined to 20.8 per cent—still elevated, but indicative of sustained improvement.

“The task of consolidating stability is a shared one,” he cautioned. “Sustaining a stable exchange rate, deepening credit to productive sectors, and expanding exports require close collaboration between the Bank of Ghana and the banking industry.”

Dr. Asiama also encouraged banks to design export-oriented financial products, support SMEs and agribusinesses, and enhance foreign exchange sourcing through formal channels.

He urged compliance with local regulations, including the use of domestic insurance companies for import coverage, to curb FX leakages and build local liquidity.

He further encouraged banks to list publicly on the Ghana Stock Exchange to strengthen capital, improve transparency, and enhance long-term growth prospects.

Inflation returns to single digits

The meeting came just two weeks after the Monetary Policy Committee’s (MPC) 126th session, which reviewed economic developments and projected continued progress in inflation control and growth performance.

According to Dr. Asiama, Ghana’s macroeconomic indicators are showing their strongest performance in years.

Inflation fell to 9.4% in September 2025, marking the first return to single digits in four years and the ninth consecutive monthly decline.

Food inflation dropped sharply to 11%, while non-food inflation eased to 8.2%, reflecting the combined effects of prudent monetary management, fiscal discipline, and stable liquidity conditions.

“The return to single-digit inflation marks a new chapter in Ghana’s economic recovery,” Dr. Asiama said.

“But it is not the end of the story. Our collective responsibility now is to sustain discipline, strengthen the financial system, and ensure that stability translates into jobs, affordable credit, and real growth.”

Strong growth and external stability

Ghana’s growth trajectory has also been positive. Data from the Ghana Statistical Service show that the economy expanded by 6.3% in the second quarter of 2025, with non-oil GDP growing by 7.8%, driven by services and agriculture.

The Composite Index of Economic Activity (CIEA) rose by 6.1% in July, signalling continued expansion in domestic demand and production.

Externally, Ghana recorded a trade surplus of $6.2 billion in the first eight months of 2025, while international reserves climbed to $10.7 billion, equivalent to 4.5 months of import cover.

The cedi has appreciated by 21% year-to-date, ranking among the best-performing currencies globally.

“This performance underscores the growing credibility of our policy framework and the renewed confidence of both domestic and international markets,” Dr. Asiama noted.

Transmission of policy easing

The Governor revealed that the recent monetary policy easing is already filtering through to the financial system. Treasury bill rates have declined from 13.4% in July to 10.3% in August, while average lending rates have dropped from 26.6% to 24.2%.

“We expect further improvement as banks adjust their models to reflect the lower policy rate,” he said.

Collaboration for sustainable recovery

Dr. Asiama reiterated that the BoG will continue to work closely with the banking community to strengthen financial intermediation, promote stability, and ensure that the benefits of economic recovery reach households and businesses.

“The Bank of Ghana will continue to engage through open dialogue, consistent regulation, and shared purpose,” he assured. “Together, we can transform stability into inclusive and sustained prosperity.”

Post Views: 125
Tags: Bank of GhanaDr Johnson AsiamaMonetary Policy Rate
NewsCenta

NewsCenta

Related Stories

BoG Cedi@60

BoG launches “Cedi@60” 

by NewsCenta
October 28, 2025
0

The Bank of Ghana (BoG) has officially launched the “Cedi@60” initiative, a year-long national engagement commemorating six decades of the...

Ghana Cedi strength

Ghana Cedi @60: A journey of strength, struggles, and resilience

by Kojo Emmanuel
October 28, 2025
0

In July 1965, Ghana introduced its own currency — the Cedi — marking a significant milestone in the nation’s economic...

Ghana IMF Asiama Digital bank BoG money laundering

BoG tightens anti-money laundering rules

by Kojo Emmanuel
October 28, 2025
0

The Bank of Ghana (BoG) has announced the introduction of stricter measures aimed at combating money laundering and the financing...

GH¢114.5 billion half Finance Minister budget

Finance Minister expected to present 2026 budget on November 13

by Kojo Emmanuel
October 27, 2025
0

Ghana’s Finance Minister, Dr Cassiel Ato Forson, is expected to present the 2026 Budget Statement and Economic Policy to Parliament...

Recommended

Women's Africa Cup Black Queens Egypt

Black Queens rout Egypt to qualify for 2026 WAFCON

October 29, 2025
Paul Baffoe-Bonnie Justice galamsey drug Mahama Suspend vetting Minority

Suspend CJ nominee’s vetting over pending cases — Minority

October 29, 2025
OSP MIIF gold

$94m MIIF gold deal: OSP raids Goldridge CEO’s properties

October 29, 2025

Popular Story

  • Songs Daddy Lumba

    See the list of over 200 songs Daddy Lumba released

    746 shares
    Share 298 Tweet 187
  • The true story behind Ghana’s acceptance of deportees

    723 shares
    Share 289 Tweet 181
  • Gold-backed policies since 2021 driving economic gains — BoG

    715 shares
    Share 286 Tweet 179
  • 10 of top 11 causes of death killing more men in Ghana

    700 shares
    Share 280 Tweet 175
  • Bissue floors High Court and OSP at Supreme Court

    692 shares
    Share 277 Tweet 173
NewsCenta

Newscenta is a Ghana-based news organisation publishing in print (The Newscenta Newspaper) and on a digital media platform (newscenta.com) dedicated to delivering timely and impactful news across various sectors, including politics, business, economy, technology, and culture.

  • About Us
  • Contact Us
  • Health
  • Education
  • Mining
  • Energy
  • Telecoms
  • Agriculture
  • Opinion
  • Newscenta Newspaper
  • Trade

© 2025 All Rights Reserved NewsCenta.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • News
    • Politics
    • Local
    • World
  • Entertainment
    • Celebrities
    • Music
  • Lifestyle
  • Newspaper Headlines
  • Business
  • Agriculture
  • Education
  • Sports
  • Tech
  • Opinion
  • Newscenta Newspaper

© 2025 All Rights Reserved NewsCenta.

Connect with us