Beyond Treasury Bills: Ghana’s Test of “Real” Banking

In the chronicles of Ghana’s financial history, the past decade will be remembered as the age of “lazy banking”—a time when institutions chose the comfort of government securities over the challenge of nation-building. With Treasury bill rates soaring near 30%, banks became custodians of deposits rather than catalysts of growth. But history has turned a page. As of May 2026, the high-yield comfort zone has collapsed. The question before us is solemn and urgent: will our banks rise to the call of duty, or retreat into irrelevance?

The End of Easy Money

• Plunging Yields: The 91-day T-bill rate has fallen to single digits, stripping banks of their effortless profit cushion.
• Monetary Pivot: The Bank of Ghana’s cut of the Monetary Policy Rate to 14% is a deliberate push toward real lending.
• Declining Lending Rates: Commercial lending rates now average 19.2%, down from over 30% just a year ago.
• Post-DDEP Recovery: Banks, having survived the Domestic Debt Exchange Programme, must diversify or risk collapse.
• Private Sector Appetite: Confidence surveys show businesses ready to expand as inflation cools toward single digits.

The Banks’ Responsibility: No More Excuses

The era of hiding behind government debt is over. To continue on that path is to betray the Ghanaian entrepreneur and undermine the nation’s future. Real banking demands:

• Risk Assessment, Not Risk Avoidance
• Partnership, Not Predation
• Innovation, Not Inertia

Policy Recommendations: A Roadmap for Reform

• SME Credit Guarantee Schemes: Government-backed guarantees to reduce risk and unlock lending.
• Mandatory Lending Quotas: Require banks to allocate a minimum share of loans to SMEs and productive sectors.
• Tax Incentives: Reward banks that channel funds into manufacturing, agriculture, and technology.
• Transparency Mandates: Publish annual reports showing lending to private sector versus government securities.
• Digital Lending Platforms: Partner with fintechs to streamline SME financing and cut red tape.

For Entrepreneurs: Seize the Window

• Formalize operations with proper registration and governance.
• Document growth plans with clear business strategies.
• Leverage the easing inflation to pitch bold, credible projects.

For Savers: Demand More

• Expect lower returns on savings accounts.
• Diversify into mutual funds, cooperatives, and equity opportunities.
• Hold banks accountable for how deposits are used.

The collapse of “lazy banking” is not merely an economic shift—it is a moral reckoning. Ghana’s banks must prove they are more than passive custodians; they must become engines of growth. Entrepreneurs must rise with discipline and vision. Savers must demand transparency and impact.

Ghana does not need banks that lend only to government. Ghana needs banks that lend to Ghanaians.

The window of opportunity is open. Let this be the dawn of real banking—where institutions work as hard for the Ghanaian people as the people work for their money.

Signed:
✍️ Retired Senior Citizen
For and on behalf of all Senior Citizens of the Republic of Ghana 🇬🇭
Teshie-Nungua
[email protected]