By Adnan Adams Mohammed
The Bank of Ghana (BoG) has taken a decisive stance to fully divest its residual holdings in commercial banks, including the Agricultural Development Bank (ADB) and National Investment Bank (NIB), reinforcing its primary mandate as an independent industry regulator.
Addressing journalists and media executives during an interactive session following the Monetary Policy Committee (MPC) meetings, the Governor of the Bank of Ghana outlined major policy updates covering state divestments, climate-risk banking frameworks, currency enforcement, and monetary policy dynamics.
Exit from Commercial Banking Ownership
Clarifying the central bank’s strategy regarding state-owned and commercial financial institutions, the Governor confirmed that the BoG Board has formally resolved to sell off its remaining equity stakes in ADB and NIB.
“We still have some residual shares about 13% in ADB. The Bank of Ghana Board has taken the decision that we should dispose of that shareholding, and with time, later this year, that will be done,” the Governor stated. “In NIB, we have just around 1% shareholding. That will also be disposed of. Bank of Ghana certainly will get out of the space. We are a regulator and will continue to be a regulator in that regard.”
Discipline, Consensus, and Interest Rate Trajectory
On monetary policy voting mechanics and the committee’s decision-making process, the Governor clarified that recent policy holds stem from exhaustive risk assessments by all seven MPC members balancing global economic shocks against domestic recovery.
“Talking about inflation and growth, it is the balance of those two types of factors and where they are tilting towards that informs the decision,” the Governor explained. “There are seven of us. Since last year, we’ve moved on to not just a consensus, but towards a majority decision. So the decision is based on what the majority decides, and that becomes binding on everybody.”
Reaffirming the central bank’s broader long-term objective regarding credit accessibility, the Governor expressed optimism that borrowing costs will decline once current external pressures clear.
“Lower interest rates are good for everyone. Private sector people can borrow lower. We are still committed to that; we want to see businesses access cheaper funding so they can expand and create jobs,” the Governor assured. “When these global shocks edge out, we will see a return to that lower interest trend.”
Climate Risks, Unclaimed Balances, and Local Sentiment
Addressing concerns over environmental sustainability, the central bank emphasized that recent severe flooding across parts of the country underscores the necessity of integrating climate risks into corporate lending decision-making. Commercial banks face a compliance timeline running through 2027 to implement these green framework guidelines.
“The experience with recent flooding proves that we need to take these risks seriously going forward,” the Governor stressed. “We will do that as a central bank to make sure that credit decisions made by commercial banks always integrate environmental concerns.”
Regarding recent shifts in consumer and business confidence surveys, the Governor described the shift as marginal and largely reflective of wider global financial instability, while encouraging formal legal applications for official inquiries into unclaimed bank balances.
Crackdown on Coin Rejections and Currency “Spraying”
Addressing public reports regarding traders and individuals refusing legal tender coins, as well as the mishandling of paper currency at public functions, the Governor issued a firm warning on upcoming enforcement drives.
“The notes and coins we issue are legal tender for the payment of goods and services. So long as these are genuine notes and coins from the Bank of Ghana, they should be accepted,” the Governor affirmed.
The central bank chief further announced an immediate halt to public currency abuse, specifically targeting money “spraying” and currency bouquets at celebrations.
“One practice we want to discourage is those who spray notes at functions. We are going to make sure that practice is stopped immediately,” the Governor declared. “Notice has been issued, and we are going to ensure that we enforce that practice is discontinued.”
