Newly sworn-in Governor of the Bank of Ghana, Dr. Johnson Asiama, has vowed to address the persistent challenge of high non-performing loans (NPLs) in the country’s banking sector as part of a broader strategy to enhance financial stability and economic growth.
Speaking at his swearing-in ceremony on Tuesday February 25, 2025, Dr. Asiama stressed the need for targeted reforms to strengthen the resilience of banks and improve their ability to support economic activities.
While our banking sector remains broadly stable after the recent crises, it requires targeted reforms to address legacy challenges and ensure continued resilience,” he stated.
Among the key measures outlined by the Governor is the enforcement of stricter prudential regulations to curb weak risk management practices in the industry. According to him, addressing the high levels of NPLs will be a priority under his leadership.
Under my stewardship, we shall enforce strict prudential regulations while fostering an enabling environment for responsible lending and innovation in the banking sector. We shall tackle the problem of high non-performing loans (NPLs) and weak risk management practices in the industry,” Dr. Asiama affirmed.
The Governor also highlighted other key initiatives aimed at strengthening the financial sector. These include working closely with banks to minimize cybersecurity breaches, reinforcing capital adequacy requirements, and updating the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930) to enhance the framework for managing distressed institutions.
” We shall work closely with banks to reduce the high incidence of cybersecurity breaches and strengthen capital adequacy requirements, update the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930) which was passed during your tenure in 2016, to enhance our resolution framework, and ensure that distressed institutions are effectively managed while maintaining financial stability,” he noted.
Dr. Asiama further stressed the importance of collaboration with stakeholders, including banks, financial institutions, technology partners, businesses, and regulators, to build a robust financial system that benefits all Ghanaians.
We shall work with all stakeholders – including banks, financial institutions, technology partners, businesses, and regulators – to ensure that every Ghanaian; from traders to entrepreneurs, benefit from a financial system that is modern, fair, and built to last,” he assured.
His commitment to tackling non-performing loans and enhancing regulatory oversight comes at a critical time when the banking sector is navigating post-crisis challenges. The reforms are expected to bolster investor confidence and create a more resilient financial system capable of driving sustainable economic growth.
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