BoG to tighten banks’ credit risk controls as private-sector lending surges 35.5%

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