Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, has urged banks to take advantage of improving macroeconomic conditions to increase lending to productive sectors of the economy.
He said relative exchange rate stability, declining inflation, easing financial conditions and narrowing interest margins were creating a more favourable environment for businesses and financial institutions.
Speaking at an engagement with chief executives of banks in Accra on Wednesday, August 12, Dr Asiama said the improvements were already contributing to a rebound in credit creation.
“Inflation has declined significantly, the exchange rate has remained relatively stable, financial conditions have eased considerably, and interest margins have become increasingly compressed. Against this backdrop, we are beginning to see a strong rebound in credit creation,” he said.
The Governor, however, acknowledged that access to finance remained a major challenge for many small and medium-sized enterprises, particularly those operating within the agricultural value chain.
He urged banks to develop credit products that reflect the operating realities of businesses, especially those in agriculture where income and cash flows are often seasonal.
According to Dr Asiama, repayment structures aligned with borrowers’ cash-flow patterns could improve access to credit while enabling banks to manage lending risks more effectively.
He said the gains from improving macroeconomic conditions must translate into increased productive activity, business expansion and job creation.
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