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Home » Blog » IMF flags gaps in BoG’s macroprudential policy framework
Business

IMF flags gaps in BoG’s macroprudential policy framework

William Agyapong
12 hours ago
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An International Monetary Fund (IMF) technical report has revealed that the Bank of Ghana (BoG) currently lacks a formal macroprudential policy strategy.

The April 2026 report noted that the objectives of macroprudential policy are not clearly defined in official documents or publications, with limited discussion in the Financial Stability Report and on the BoG’s website.

It found that macroprudential decisions are largely embedded within the monetary policy process, with some handled by the Monetary Policy Committee (MPC).

However, there is no dedicated financial stability committee focused on systemic risks.

While the BoG introduced measures to manage the impact of COVID-19 and the Domestic Debt Exchange Programme, these were announced through the Governor and the MPC.

The report explained that the MPC mainly focuses on monetary policy, without clearly defined financial stability goals.

“Staff from the FSD and the Research Department present reports on financial stability and macroprudential risk assessments at MPC’s bi-monthly meetings, but macroprudential decisions are taken only exceptionally”, it added.

It also pointed out that macroprudential tools are not clearly outlined in official documents, though they may be used in exceptional cases for monetary policy purposes.

Referring to the BoG’s monetary policy framework, the report noted that the MPC may introduce additional measures that “involve the utilisation of other monetary policy tools at the disposal of the Central Bank, such as moral suasion and macroprudential measures.”

Looking ahead, the IMF said the BoG’s macroprudential role could be strengthened by clearly defining functions that support financial stability.

“While the BoG’s current broad legal powers may suffice to activate certain macroprudential measures, implementing macroprudential policy in a more systematic and comprehensive manner over deposit-taking institutions under its supervision would benefit from more explicit legal provisions”, it explained.

The report recommended that the BoG develop and publish a macroprudential strategy to guide policy decisions.

“At a minimum, this strategy should clearly define financial stability, systemic risk, and macroprudential policy.”

It also advised the central bank to outline specific objectives and list available tools, while allowing room for future updates.

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TAGGED:Bank of Ghana (BoG)IMF
SOURCES:The Ghana Report

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