The Governor of the Bank of Ghana (BoG) Dr Johnson Asiama has cautioned commercial banks against excessive reliance on net interest income, warning that a changing interest rate environment could test the resilience of earnings across the industry.
Addressing heads of banks in Accra on February 18, 2026, the governor noted that while interest income remains a core component of banking operations, overdependence on it poses risks.
“There is nothing inherently problematic about net interest income. However, a high dependence on it increases sensitivity to interest rate cycles and sovereign exposure dynamics.”
His comments come at a time when Ghana’s monetary conditions are gradually normalising, leading to tighter spreads and declining yields on government securities, traditionally a significant source of bank profitability.
Dr Asiama stressed that as the rate environment stabilises, margins are likely to compress, making it imperative for banks to rethink their revenue strategies.
“As margins compress in a normalizing rate environment, earnings resilience will increasingly depend on diversification, particularly through transactional banking, trade services, payments, treasury activities, and other fee-based income streams that are less balance-sheet intensive.”
The remarks signal a strategic shift in regulatory expectations, with the central bank encouraging institutions to strengthen non-interest income streams and reduce concentration risks tied to sovereign instruments.
The engagement forms part of the central bank’s ongoing supervisory dialogue aimed at strengthening financial stability and ensuring Ghana’s banking sector remains resilient amid evolving macroeconomic conditions.
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