Editorial: Banking regulator plans to tighten supervision going forward

The Bank of Ghana has signalled tougher supervision on banks as the next phase of reforms. The central bank will introduce new stress tests, recovery-planning requirements and stricter enforcement to protect financial stability, even as lenders return to profitability and capital strength improves.

Following a period of recovery for the banking sector, BoG will now focus on tighter risk controls.

These measures come after the Monetary Policy Committee cut its benchmark rate by 350 basis points to 18% in November, extending an easing cycle by 1000 basis point (bps) as inflation fell and external buffers strengthened.

In a post–127th MPC meeting with heads of banks recently, BoG Governor Dr. Johnson Asiama said the regulator will consolidate recent gains with “strict enforcement”. This means the central bank will be firm where risks to stability emerge.

Dr. Asiama said trust and collaboration have improved, reflected in clearer expectations and steadier policy transmission across the system. Macro conditions have turned more supportive. Inflation has eased sharply, falling to 6.3 percent in December 2025 and returning to the central bank’s median target band for the first time in several years.

He attributed the disinflation to tight monetary policy, fiscal discipline and improved food supply conditions, adding that underlying inflation expectations have been “firmly re-anchored”, helping restore confidence among households and businesses.

On the external front, Ghana’s buffers have been rebuilt on the back of strong export performance led by gold and supported by cocoa – strengthening the current account position and improving the country’s ability to absorb future shocks.

Within the banking sector, conditions have improved but risks persist. The central bank cautions that credit risks remain elevated. Thus, further policy actions – including recapitalisation of a few undercapitalised banks and full implementation of new regulatory guidelines aimed at reducing NPLs – will be needed to strengthen the industry.

The regulator also plans to deepen engagement with banks and expand training as part of the reform push, while strengthening collaboration with other financial regulators and industry bodies to safeguard systemic stability.

Dr. Asiama renewed call for banks to support economic growth by expanding credit to the real sector, particularly small- and medium-sized enterprises.

 

The post Editorial: Banking regulator plans to tighten supervision going forward appeared first on The Business & Financial Times.

Read Full Story