Banks Begin Proactively Offering Loans to Consumers, Says BoG Governor – Life Pulse Daily

Introduction

In a significant shift within Ghana’s financial landscape, commercial banks are now actively reaching out to consumers with loan offers, according to the Governor of the Bank of Ghana (BoG). This development signals improving liquidity conditions and a strengthening banking sector following recent monetary easing measures. The proactive approach by banks marks a notable change from previous periods when consumers had to actively seek out credit facilities.

Key Points

Background

The Bank of Ghana has been implementing a series of monetary policy adjustments to stimulate economic growth and improve credit access. Following a 350-basis-point cut in November 2025, the central bank further reduced the Monetary Policy Rate (MPR) by 250 basis points in January 2026, bringing it down from 18% to 15.5%. This aggressive easing cycle reflects the central bank’s response to easing inflationary pressures and improving macroeconomic conditions.

Governor Dr. Johnson Asiama announced these developments during the 128th Monetary Policy Committee (MPC) press briefing in Accra on January 28, 2026. The governor highlighted that banks are now more willing to extend credit at significantly reduced interest rates, marking a departure from the tight credit conditions that prevailed in previous years.

Analysis

The shift toward banks proactively offering loans represents a fundamental change in Ghana’s credit market dynamics. This development indicates several important factors:

**Improved Bank Liquidity**: Banks now have more funds available for lending, suggesting they have strengthened their capital positions and are more confident in their ability to manage credit risk.

**Reduced Lending Rates**: The governor mentioned that banks are offering loans at rates as low as 15%, which is significantly lower than rates that prevailed in previous periods. This reduction makes credit more accessible to a broader segment of the population.

**Enhanced Consumer Confidence**: The fact that banks are calling consumers rather than waiting for loan applications suggests growing confidence in the economic outlook and borrowers’ ability to repay.

**Economic Stimulus**: Increased credit availability typically stimulates economic activity by enabling businesses to expand and consumers to make purchases they might otherwise defer.

The central bank’s monetary policy decisions appear to be achieving their intended effect of stimulating credit growth while maintaining price stability. The governor emphasized that the policy adjustments were based on forecasts and survey-based inflation expectations, which suggest that headline inflation is likely to remain within the medium-term target.

Practical Advice

For consumers considering taking advantage of these new lending opportunities, several factors warrant consideration:

**Compare Offers**: With multiple banks now actively seeking borrowers, it’s wise to compare loan terms, interest rates, and fees across different institutions.

**Assess Repayment Capacity**: While loans are more accessible, borrowers should carefully evaluate their ability to repay, considering potential changes in their income or economic conditions.

**Understand Terms**: Pay close attention to loan terms, including whether rates are fixed or variable, any associated fees, and repayment schedules.

**Consider Purpose**: Loans for productive purposes such as business investment or education may offer better long-term value than consumption loans.

**Maintain Good Credit**: With banks competing for borrowers, maintaining a good credit history can help secure more favorable terms.

FAQ

Conclusion

The Bank of Ghana’s monetary easing policy appears to be achieving its intended effect, with commercial banks now proactively offering loans to consumers at reduced interest rates. This development signals improving economic conditions and greater access to credit, which could stimulate private-sector activity and support economic growth in 2026. However, consumers should approach these opportunities prudently, carefully considering their financial circumstances and the terms of any credit they accept. The central bank’s challenge will be to maintain this balance between stimulating growth and preserving price stability as the economy continues to evolve.