The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has cautioned banks against complacency in credit risk management, despite recent improvements in asset quality.

Addressing heads of banks at the 128th post-MPC meeting, the Governor acknowledged that non-performing loans, (NPLs) have declined.

However, he stressed that NPLs remain above benchmark levels and continue to pose a structural concern for the banking industry.

Dr. Asiama warned that as credit expansion resumes in a stabilising the macroeconomic environment, underwriting discipline and rigorous sectoral risk assessment will be critical to sustaining gains.

"While non-performing loans have declined they remain above benchmark levels. As credit expansion resumes underwriting discipline and sectoral risk assessment will be critical", he said.

He noted that the stability must now translate into purposeful financial intermediation, particularly in agriculture, manufacturing, SMEs and other value-adding sectors but without reintroducing asset quality pressures that previously weakened balance sheets.

The Governor emphasised that banks must avoid repeating past cycles of aggressive lending, followed by rising impairments.

He added that business model analysis will now form an embedded part of the central bank’s supervisory framework, enabling early identification of emerging credit risks and timely regulatory intervention.

According to Dr. Asiama, the task ahead for the banking sector is not merely growth, but durable growth supported by disciplined credit practices, sound governance and improved risk management systems.

"Stability must now translate into purposeful intimidation, supporting agriculture, manufacturing, SMEs and value adding sectors. Without reintroducing asset quality pressures, business model analysis will now form an embedded part of supervisory assessment, supporting the early identification of emerging risks and enabling timely policy and supervisory interventions”,, he added.

He reaffirmed that the Bank of Ghana will remain firm but fair in its supervisory engagement as the sector transitions from stability to structural strengthening.