The Bank of Ghana (BoG)is set to introduce a new Credit Risk Management Directive as private-sector credit growth accelerates sharply, raising the need for stronger safeguards against a deterioration in banks’ loan portfolios.

Governor Dr Johnson Asiama said the directive will strengthen banks’ credit risk frameworks amid a significant rebound in lending to the private sector.

Speaking at a meeting with the heads of banks, Dr Asiama disclosed that private-sector credit grew by 35.5% in August 2026, compared with 13.3% during the same period last year.

In real terms, credit growth reached 29%, up from just 1.7% a year earlier.

The Governor attributed the strong rebound partly to lower lending rates, an easing in banks’ credit stance and a recovery in demand for credit.

The average lending rate declined sharply to 15.9% in August 2026, from 24.2% a year earlier.

However, Dr Asiama cautioned banks against allowing the rapid expansion in lending to weaken credit standards.

He said the growth in private-sector credit must be supported by sound underwriting standards and effective risk-management frameworks.

“As private sector credit expands rapidly, this growth must be supported by sound underwriting standards and effective risk management frameworks,” he said.

The new directive will cover credit origination, administration, monitoring, measurement and recovery, and is expected to complement the Non-Performing Loans notice issued by the central bank last year.

Dr Asiama said although the banking sector’s NPL ratio has declined significantly, it remains elevated relative to regulatory thresholds.

The BoG therefore expects banks to continue strengthening credit risk management and comply fully with existing NPL guidelines