A banking and financial consultant has endorsed the International Monetary Fund’s (IMF) latest recommendations for the Bank of Ghana (BoG), describing macroprudential policy as an essential complement to existing monetary and supervisory frameworks rather than a replacement for them.
Dr. Richmond Atuahene, responding to an IMF Technical Assistance Report published on April 8, 2026, argued that Ghana’s financial system cannot be fully protected by focusing solely on inflation control and the safety of individual banks. The missing piece, he said, is a dedicated framework for managing risks that threaten the entire financial system at once.
“Bank of Ghana’s macroprudential policy must be recognised as a critical, complementary tool to monetary policy, essential for curbing systemic risk and boosting financial resilience,” Dr. Atuahene said in his assessment.
What the IMF Recommended
The IMF report, which focuses on strengthening the specialised tools central banks use to manage risks that could threaten the stability of the entire financial system rather than individual institutions, was released as Ghana prepares to conclude its three-year Extended Credit Facility (ECF) arrangement with the IMF. Its findings arrive at a sensitive moment, with Ghana’s banking sector still recovering from the 2022 Domestic Debt Exchange Program (DDEP) and continuing to carry elevated non-performing loans (NPLs) and heavy government debt exposure.
A key focus of the report was guiding the BoG on two major protective buffers. The first is the Countercyclical Capital Buffer (CCyB), which requires banks to accumulate additional capital during periods of strong economic growth so they can continue lending without strain during downturns. The second is the Domestic Systemically Important Bank (D-SIB) buffer, targeting institutions large and interconnected enough that their failure would pose risks to the broader economy.
The IMF also recommended that the BoG develop a formal macroprudential strategy, establish a dedicated Financial Stability Committee as a decision-making body, and adopt forward-looking monitoring tools capable of identifying vulnerabilities before they crystallise into crises.
The Case for a Second Pillar
Dr. Atuahene described macroprudential policy as a “second pillar” that allows the central bank to multitask more effectively. Under such a framework, monetary policy can remain focused on price stability while separate macroprudential tools address specific dangers such as credit booms or asset bubbles before they grow dangerous.
He stressed that the approach moves beyond institution-specific oversight to address the structural vulnerabilities and interconnections between banks, particularly the risk posed by “too big to fail” institutions whose collapse could trigger cascading failures across the sector.
Building Buffers in Good Times
The practical value of the CCyB and D-SIB tools, Dr. Atuahene noted, lies in their timing. By compelling banks to build capital cushions during periods of easy credit, the tools ensure those reserves are available to absorb losses during a downturn, reducing the likelihood that banks cut off lending to households and businesses precisely when the economy needs credit most.
The IMF also encouraged the BoG to establish a dedicated communications channel to keep investors, businesses, and the public better informed about systemic risks and the measures being taken to address them.
For the average Ghanaian, a well-implemented macroprudential framework translates into a more stable banking environment, more responsibly managed credit cycles, and a financial system better equipped to absorb future shocks without triggering the kind of contagion that has historically disrupted economic progress.
