BoG Governor Urges Banks to Boost Lending Amid Signs of Economic Recovery

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Governor of the Bank of Ghana (BoG), Johnson Pandit Asiama, has urged commercial banks to significantly increase lending to both businesses and individuals, pointing to easing inflationary pressures and a recent cut in the monetary policy rate as clear indicators of an improving economy.

Push for Credit Expansion

Speaking at a press briefing in Accra, Dr. Asiama emphasized that the country’s recent macroeconomic gains must translate into real benefits for the private sector. “The lower cost of borrowing and improved stability in the cedi should be the green light for banks to ease credit conditions,” he said, stressing that the private sector remains the engine of job creation and growth.

The BoG recently cut the monetary policy rate from 29% to 27%, marking the second consecutive reduction in 2025, after inflation slowed from 32.1% in January to 24.8% in July. The central bank attributes the improvement to prudent fiscal management, increased foreign exchange reserves, and better performance in key export sectors.

Economic Impact

BoG Governor Urges Banks to Boost Lending Amid Signs of Economic Recovery
Mr. Johnson Pandit Asiama

Analysts say a rise in lending could inject fresh capital into small and medium-sized enterprises (SMEs), spur investment, and strengthen household consumption — all vital to sustaining the rebound. However, concerns remain about potential credit risk if banks loosen lending standards too quickly.

The BoG has indicated it will closely monitor lending practices to ensure credit growth does not compromise financial stability. “This is the moment for banks to act decisively but responsibly,” Dr. Asiama concluded.


Read Also: BoG Postpones Launch of Cedi’s 60th Anniversary After Helicopter Crash

Author

  • Daniel Ablordey

    Daniel Ablordey is a Business Analytics student at the University of Ghana Business School and an emerging strategist at the intersection of data, markets, and narrative. With a keen analytical mind and a passion for African business and economic trends, he is building a career focused on translating complex data-driven insights into accessible, decision-relevant stories that matter.As a writer and editor with Insight Ghana, African Business Insight, and The African Journal, Daniel delivers sharp, high-impact analysis on current affairs, business developments, and emerging trends across the continent. His work is defined by precision, clarity, and a deep commitment to responsible journalism — ensuring that every story he tells is not only accurate but meaningful to the audiences it serves.Beyond his editorial work, Daniel serves as an Ecobank Youth Ambassador, where he actively promotes financial inclusion, digital banking, and financial literacy among young Ghanaians. His leadership experience spans academic, professional, and faith-based institutions, where he has consistently driven initiatives centered on growth, structure, and long-term impact.Grounded in the principles of Pan-Africanism and service, Daniel brings a rare combination of analytical rigour and storytelling depth to his work. Whether unpacking market behavior, profiling emerging business leaders, or covering cultural shifts shaping the continent, he approaches every assignment with strategic intent and editorial integrity.His broader ambition is to contribute to Africa's transformation by shaping how data, business, and storytelling intersect — not just locally, but on a global stage.

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Daniel Amenyo Ablordey
Daniel Ablordey is a Business Analytics student at the University of Ghana Business School and an emerging strategist at the intersection of data, markets, and narrative. With a keen analytical mind and a passion for African business and economic trends, he is building a career focused on translating complex data-driven insights into accessible, decision-relevant stories that matter.As a writer and editor with Insight Ghana, African Business Insight, and The African Journal, Daniel delivers sharp, high-impact analysis on current affairs, business developments, and emerging trends across the continent. His work is defined by precision, clarity, and a deep commitment to responsible journalism — ensuring that every story he tells is not only accurate but meaningful to the audiences it serves.Beyond his editorial work, Daniel serves as an Ecobank Youth Ambassador, where he actively promotes financial inclusion, digital banking, and financial literacy among young Ghanaians. His leadership experience spans academic, professional, and faith-based institutions, where he has consistently driven initiatives centered on growth, structure, and long-term impact.Grounded in the principles of Pan-Africanism and service, Daniel brings a rare combination of analytical rigour and storytelling depth to his work. Whether unpacking market behavior, profiling emerging business leaders, or covering cultural shifts shaping the continent, he approaches every assignment with strategic intent and editorial integrity.His broader ambition is to contribute to Africa's transformation by shaping how data, business, and storytelling intersect — not just locally, but on a global stage.