As the Bank of Ghana (BoG) targets earlier detection of structural risks, the regulator is set to integrate business model analysis into routine supervisory assessments, Governor Dr. Johnson P. Asiama has stated.
The move follows a thematic review of banks’ funding structures, asset allocation patterns, earnings composition and governance effectiveness under both baseline and stress scenarios.
The review confirmed structural features which warrant closer regulatory attention as macroeconomic conditions normalise.
Dr. Asiama met bank chief executives at a post-Monetary Policy Committee engagement in Accra recently, where he indicated that the approach represents a move from compliance-based oversight toward a more forward-looking assessment of how banks generate earnings, manage funding risks and allocate capital.
Thus, BoG will supervise the sustainability of revenue streams, concentration risks, governance structures and resilience of business strategies under varying macroeconomic scenarios.
This means greater scrutiny will be placed on how earnings are generated, how risks are distributed across sectors and how balance sheets respond to shifts in interest rates and sovereign exposure dynamics.
Dr. Asiama noted that as monetary policy transitions from stabilisation to calibration – following a 250 basis-point reduction in the policy rate to 15.5 percent, the supervisory framework must evolve accordingly.
Notably, non-performing loans have declined – falling from 21.8 percent in December 2024 to 18.9 percent by December 2025; however, they remain above benchmark levels.
With inflation expectations anchored and financial conditions easing, lending rates have begun to decline and real private sector credit growth is recovering. The Bank expects this trend to continue, creating opportunities for deeper intermediation.
However, the central bank is keen to avoid a repeat of past cycles in which rapid credit expansion was a causative factor in asset quality deterioration.
Therefore, eternal vigilance is key and it is refreshing to learn that the regulator intends to leave no stone unturned with regard to supervision of the country’s banking landscape, thereby fulfilling its mandate to the core.
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