The new Governor of the Bank of Ghana (BoG), Dr. Johnson Pandit Kwesi Asiama, has expressed his tenure’s commitment to addressing the issue of high non-performing loans (NPLs) in the banking sector.
This, he says, is part of his strategy to enhance financial stability and economic growth in the country.
During his acceptance speech at the swearing-in ceremony held for him and his 1st Deputy at the Jubilee House Tuesday, February 25, 2025, Dr. Asiama reemphasised the need to bolster the banking sector to support businesses for economic growth.
“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.
Outlining the key measures his leadership will be looking at, he disclosed that addressing the high levels of NPLs will be a priority.
He noted that “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.”
He also shared what he intends to achieve by working closely with the banks which includes minimising 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 added.
Dr. Asiama further shared the relevance of dealing with other stakeholders including the financial institutions, technology partners, banks, businesses, and regulators in building a robust financial economy for the benefit of state.
“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.
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