{"id":99002,"date":"2025-10-17T14:05:02","date_gmt":"2025-10-17T14:05:02","guid":{"rendered":"https:\/\/sotnews.agency\/?p=99002"},"modified":"2025-10-17T14:05:02","modified_gmt":"2025-10-17T14:05:02","slug":"bog-dep-gov-urges-financial-sector-to-look-beyond-profits-embrace-sustainable-lending-in-extractive-industry","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=99002","title":{"rendered":"BoG Dep. Gov. urges financial sector to look beyond profits, embrace sustainable lending in extractive industry"},"content":{"rendered":"
\n
\n \t<\/i> Read Time:<\/span>2 Minute, 4 Second <\/div>\n\n <\/div>
\n

The Second Deputy Governor of the Bank of Ghana (BoG), Matilda Asante-Asiedu, has urged financial institutions to balance profit-making with sustainable investment practices, particularly in the country\u2019s extractive sector.<\/p>\n

Speaking at a forum on sustainable banking practices, she underscored the importance of looking beyond short-term financial gains and considering the long-term socio-economic and environmental impacts of financing decisions.<\/p>\n

\u201cI was just doing the math. Between mining and oil and gas, in the first half of this year, their contribution to GDP amounts to 20 percent,\u201d she noted. \u201cThat\u2019s significant. It\u2019s the backbone of the economy.\u201d<\/p>\n

While acknowledging the crucial role these sectors play in driving Ghana\u2019s economic growth, Mrs. Asante-Asiedu also highlighted the inherent risks they pose. She urged financial institutions to shift their mindset away from solely maximizing shareholder value.<\/p>\n

\u201cBut it also comes with its own issues and risks. As people in the financial services sector, our objective is profit-making. Especially in a commercial environment like I used to be in, where it\u2019s often about making shareholders happy,\u201d she said.<\/p>\n

\"BoG<\/figure>\n

She challenged players in the financial space to adopt a forward-thinking approach, stressing the need to integrate environmental, social, and governance (ESG) considerations into their lending practices.<\/p>\n

Her remarks come at a time when Ghana is intensifying its push for green finance and sustainable banking. The Bank of Ghana recently reported a 73.6 percent compliance rate with sustainable banking standards as of the first quarter of 2025, signaling growing commitment to environmentally responsible financing.<\/p>\n

The forum brought together key stakeholders from the banking, extractive, and development sectors to deliberate on strengthening sustainability frameworks within the financial industry.<\/p>\n

John Awuah, CEO of the Ghana Association of Banks, called for reforms to de-risk sustainable projects in the extractive and energy sectors, which are often deemed high-risk and capital-intensive. He proposed the introduction of political risk insurance products and other incentives to reduce exposure.<\/p>\n

\u201cAccess to sustainable finance is often constrained by high perceived risks and limited long-term funding. This is where de-risking mechanisms become indispensable. We must actively explore and scale up tools such as partial credit guarantee schemes,\u201d he noted.<\/p>\n

Meanwhile, Yiwande Giwa, Senior Country Manager for the International Finance Corporation (IFC), expressed optimism that continued engagement would be crucial in building an environmentally sustainable financial ecosystem.<\/p>\n

The forum was jointly organized by the Bank of Ghana and the International Finance Corporation (IFC).<\/p>\n<\/div>\n

\n
\n \n
\n \n \"Happy\"\n <\/a>\n
\n Happy <\/div>\n
\n 0<\/span>\n \n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Sad\"\n <\/a>\n
\n Sad <\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Excited\"\n <\/a>\n
\n Excited <\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Sleepy\"\n <\/a>\n
\n Sleepy <\/div>\n
\n 0<\/span>\n \n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Angry\"\n <\/a>\n
Angry<\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n \n <\/div>\n <\/div>\n\n
\n \n \"Surprise\"\n <\/a>\n
Surprise<\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n <\/div>\n <\/div>\n\n ","protected":false},"excerpt":{"rendered":"
\"BoGThe Second Deputy Governor of the Bank of Ghana (BoG), Matilda Asante-Asiedu, has urged financial institutions to balance profit-making with sustainable investment practices, particularly in the country\u2019s extractive sector. Speaking at a forum on sustainable banking practices, she underscored the importance of looking beyond short-term financial gains and considering the long-term socio-economic and environmental impacts [\u2026]<\/div>\n","protected":false},"author":1,"featured_media":99003,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1904,12,10,9],"tags":[],"class_list":["post-99002","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-and-finance","category-business","category-politics","category-popular"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/99002","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=99002"}],"version-history":[{"count":0,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/99002\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/media\/99003"}],"wp:attachment":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=99002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=99002"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=99002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}