The Bank of Ghana Governor, Dr. Johnson Asiama, has advised commercial banks that to review their business models to ensure that their operations are not affected going forward.

According to him, the era of high interest rates cannot be sustained, adding that "it is now time for the banks to begin reviewing these strategies not only to protect margins, but also to serve the broader economy”.

The Governor disclosed this at the inauguration of the Bank of Ghana Chair in Economics and Finance at the University of Ghana Legon.

The move by the Bank of Ghana is part of efforts to encourage long-term commitment to knowledge, research, and the nurturing of a new generation of thinkers who will shape the financial architecture of tomorrow.

Speaking at the programme, the Governor also said the banking sector must become a catalyst for growth, with more targeted and productive lending to Ghanaian enterprises.

On managing exchange Rate regimes, the Governor argued that “we must be honest about this divergence and work toward exchange rate frameworks that are transparent, rules-based, and credible.”

The Governor was also of the view that in the era of modernisation, “Central Banks must balance price stability with financial stability and navigating increasing government reliance on domestic financing.”

At the recent Monetary Policy Committee presser, Dr. Asiama re-echoed these concerns about the high interest rates, arguing that the rates have started dropping and there are strong indications that they could go down further. 

Managing Global Pressures

Dr. Asiama was also of the view that “we cannot always prevent global disruptions, but control our response”.

“The Cedi’s appreciation over 42% year-to-date and supported by over US$11 billion in international reserves, is evidence of how disciplined policy coordination between the central bank and fiscal authorities, supported by an IMF programme, can deliver results", he pointed out.

 Partnership with University of Ghana

Throwing Light on the partnership with the University of Ghana on the Research Chair,  the Governor described the initiative as a longstanding relationship between two institutions with “shared responsibility and national development”.

Under this initiative, the Bank of Ghana with the Chair will identify high-performing university graduates with exceptional potential in economics, finance, and public policy.

These young leaders , according to the Governor will be offered structured pathways to top global institutions, through scholarships, internships, and policy immersion opportunities.

The Governor also added that going forward, the plan is to  “ launch joint research initiatives in areas such as inflation targeting, exchange rate management, digital finance, regulation of, and monetary policy transmission