These are UMB and Prudential Bank Ghana.

According to the Governor of the Bank of Ghana, Dr. Johnson Asiamah, some commitments have been made to ensure that the two banks receive the necessary capital as soon as possible.

For UMB, he disclosed that the recapitalisation plans have been extended to end-March 2026. This is to enable other key shareholders such as SSNIT and SIC to make good the proposed capital injections.

He added that discussions are ongoing between the Bank of Ghana on one hand and SSNIT, SIC and the Ghana Amalgamated Trust on the other hand.

For Prudential Bank Limited, the Governor said the government intends to close the bank’s capital gap.

This is in line with the Overarching Restructuring Strategy and Plan developed by the Government, Bank of Ghana and Prudential Bank Limited.

Meanwhile, Dr. Asiamah says the Government of Ghana remains the majority shareholder of ADB.

It has a shareholding of 88.16% whilst the Bank of Ghana has 9.66% shares.

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At the Post-Monetary Policy Committee (MPC) meeting with CEOs of Banks, BoG Governor Dr. Johnson P. Asiama described the move as an “urgent and necessary intervention” to protect vulnerable borrowers from exploitative practices.

“Too many Ghanaians, especially young people and informal workers, are being lured by online lending platforms that make bold promises, only to trap them in cycles of hidden fees, harassment, or worse,” Dr. Asiamah said.

The Governor disclosed that the central bank has received disturbing reports of borrowers being threatened, shamed, or scammed when accessing quick loans.

“We cannot allow this to continue,” he emphasized.

The forthcoming guidelines will set clear, enforceable standards for both bank-led and non-bank digital lending models, covering:

• Licensing and authorization requirements

• Transparency in disclosures and interest rates

• Customer data protection and privacy

• Ethical recovery and debt collection practices

Dr. Asiama stressed that the guidelines aim to protect consumers and foster a responsible, regulated digital lending ecosystem.

He called on banks and financial institutions involved in digital lending, directly or via fintech partners, to begin reviewing their operations ahead of the new framework.

“Let us work together to build a digital lending space that serves people with dignity, fairness, and integrity,” he added.

The Bank of Ghana’s intervention comes amid growing concern over unregulated lending apps and platforms that often operate without adequate oversight.

These guidelines are expected to bring much-needed structure and accountability, ensuring a safer environment for digital financial services to thrive.

Speaking at the Association of Ghana Industries’ (AGI) Corporate Forum, Dr. Asiama shared his vision for a more favorable business environment, promising to use monetary policy tools to reduce the cost of lending.

He pledged to collaborate with financial institutions and the business community to strengthen the macroeconomic climate in the country.

“We will try to do things together. We’ll try to do things differently going forward,” he emphasized, highlighting the importance of collaboration between the Bank of Ghana and industry stakeholders.

Dr. Asiama said the central bank’s ambition is to reduce lending rates and stabilize prices.

“It is doable,” he asserted. “Why do we think it’s not? Why do we think the Ghanaian cedi will always be a useless currency? It’s not.”

His comments come after a constructive meeting with CEOs of all banks in Ghana, where they discussed various economic issues and strategies to boost the country’s financial sector.

“My vision is to see lending rates in this country fall to less than 10%. In other words, before the end of my four-year term, I want to see lending rates lower than 10% in this country.”

The Bank of Ghana’s efforts to reduce lending rates and stabilize the economy are expected to have a positive impact on businesses and household consumers.

“We went deeply, deeply into a lot of conversations,” he revealed, describing the meeting with bank CEOs as a fruitful engagement.

With this vision, Dr. Asiama is setting the stage for a more collaborative and innovative approach to economic development in Ghana.

According to the Governor, Dr. Johnson Asiama, policy coherence and regulatory agility must go hand-in-hand to create a vigorous and effective payment system.

“We see strong potential in tools such as multi-regulator sandboxes, which bring regulators, innovators, and governments into a shared testing environment. Similarly, Supervisory Technologies (SupTech) can enhance real-time compliance monitoring, cross-border data flows, and information sharing,” he said during a meeting with Central Bank Governors in Accra. The meeting also included the Deputy Director of the International Monetary Fund African Department and senior officials from the World Bank and IMF.

“We must also be proactive in shaping international digital standards – in areas such as AML/CFT, digital identity, and data privacy – so that they are inclusive of our contexts rather than imposed from outside. Digital trade agreements, when thoughtfully constructed, can also promote interoperability and trust,” he added.

The Governor continued, “But as we talk about systems and standards, let us not lose sight of the real human stories behind these reforms. The single mother receiving remittances to keep her children in school. The young entrepreneur seeking payment channels to export their goods. The regulator striving to ensure innovation does not outpace resilience. These are the lives we must center in our work.”

Cross-Border Payments

The Governor emphasized that cross-border payments, in particular, hold immense potential to drive inclusive growth and support livelihoods – yet they continue to face multiple challenges, such as high transaction costs, slow processing times, limited transparency, and inadequate interoperability.

He noted that these issues arise from a patchwork of regulatory frameworks, legacy systems, differing time zones, and a lack of alignment on data standards, consumer protections, and compliance protocols.

For the continent, Dr. Asiama stated that the stakes are high, pointing out that remittances, often lifelines for families, remain costly and inefficient. Additionally, small businesses face challenges with the high friction of cross-border trade settlements, and regulators struggle with balancing openness with oversight.

The seminar will conclude today, May 13, 2025. The Governor urged all participants to engage in open, forward-looking, and critical dialogue.

Speaking to Joy Business on the sidelines of the IMF/World Bank Spring Meetings in Washington D.C., Dr. Asiama assured that the central bank would continue implementing measures to preserve the current stability of the Ghana cedi.

“Going forward, we have enough reserves to maintain the current stability the cedi is enjoying against the US dollar,” Dr. Asiama stated.

However, he was quick to add, “The Bank of Ghana is not going to operate a fixed exchange rate regime. The cedi is an endogenous variable, and we must allow it to float. What the Bank of Ghana aims to do is ensure there is no excessive volatility.”

Reasons Behind the Cedi’s Stability

The Ghana cedi has recorded one of its longest periods of stability against the US dollar in recent times. Since December 2024, the local currency has remained largely stable, even appreciating against the dollar on some days.

Data from the Bank of Ghana and some commercial banks show that, as of April 2025, the cedi had appreciated by 2.76 percent against the dollar.

Bloomberg’s currency platform reported that as of April 28, 2025, most commercial banks were selling the dollar at GH¢15.58, with some quoting GH¢15.40.

Market analysts have attributed the cedi’s resilience to several factors, including active liquidity support from the central bank and BoG’s Gold Purchase Programme, which has boosted market confidence and curbed speculative activities.

The International Monetary Fund (IMF) also highlighted Ghana’s stronger-than-expected international reserve buildup.

According to the Bank of Ghana’s Economic and Financial Data, international reserves reached $9.3 billion at the end of February 2025, significantly exceeding targets set under the IMF’s Extended Credit Facility (ECF)-supported programme.

Governor’s Perspective on the Cedi’s Performance

Dr. Asiama outlined key reasons behind the currency’s stability:

• Improved external sector performance, supported by strong remittances and better earnings from gold and cocoa exports.

• Effective coordination between fiscal and monetary policy, ensuring both sides work harmoniously to strengthen economic fundamentals.

• Weaker US dollar performance globally, creating favourable conditions for the cedi.

He emphasised, “The fiscal side has been supportive of monetary measures, helping to maintain the current development.”

Impact of the IMF Programme

The BoG Governor also noted that the recent Staff-Level Agreement with the IMF has played a crucial role in boosting investor confidence.

“The Staff-Level Agreement with the IMF was like a stamp of approval for the government’s efforts to restore macroeconomic stability,” Dr. Asiama explained.

He added that discipline on both the fiscal and monetary fronts continues to help reset market expectations and restore confidence.

Impact on Inflation

Dr. Asiama expressed optimism that the cedi’s improved performance would contribute to a further slowdown in inflation in the coming months.

“This should be complemented by the monetary measures the Bank of Ghana is implementing to continue driving inflation lower,” he stated.

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This follows concerns raised by the Minority over the procedural and constitutional implications of Dr. Asiama’s early assumption of office. According to the Minority, Dr. Asiama should refrain from engaging in official duties at the BoG until his nomination as Governor is fully approved by the Council of State.

The caucus has also urged the International Monetary Fund (IMF) to exercise strict scrutiny in its engagements with Dr. Asiama to prevent potential global reputational risks to Ghana.

This stems from the government’s recent withdrawal of all charges against Dr. Asiama, who was previously facing trial in connection with the collapse of UniBank and UT Bank.

The Minority questions his credibility to serve as a lead negotiator with the IMF under these circumstances.

Speaking in an interview on Citi FM on Wednesday, Ofosu highlighted Asiama’s extensive experience and expertise in economic and financial matters.

“He is a known economic and finance expert with significant acumen. He has worked in a previous capacity as the second deputy governor of the BoG and therefore is uniquely qualified to hold the position of governor of the BoG.

“That is what President Mahama considered in appointing him to the position, and we believe that he will do a very good job,” he stated.

He emphasised that the government is not worried about the opposition, adding that stakeholders within the financial sector and the economy are well-grounded and understand the issues at hand.

“Government is not concerned. All the stakeholders within the financial sector, the stakeholders in the economy are people who are well-grounded and know what exactly the issues are regarding the economy and the nation’s finances.

“They know too well that political actors want to grandstand and dabble in all manner of theatrics as a way of furthering their political interest.

“I am not sure that any serious investor out there or any player in the Ghanaian economy will make decisions based on some issues that the minority are raising, which are not grounded and motivated by politicking,” Kwakye Ofosu explained.

The announcement was made in a statement signed by Felix Kwakye Ofosu, the Acting Spokesperson to the President.

This nomination follows a formal request by the current Governor, Dr. Ernest Addison, to proceed on leave ahead of his retirement on March 31, 2025.

Dr. Asiamah previously served as the Second Deputy Governor of the Bank of Ghana from 2016 to 2017.

He holds a Ph.D. in Economics from the University of Southampton, UK, and brings extensive expertise in monetary policy formulation, financial stability regulation, and economic research.

With over 23 years of experience at the Bank of Ghana, Dr. Asiamah has demonstrated a strong commitment to fostering a stable financial system, sound monetary policies, and accelerated economic growth in Ghana.

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