Bank of Ghana to Roll Out New Measures to Curb Rising Non-Performing Loans
ACCRA – June 4, 2025 — The Bank of Ghana (BoG) is set to issue a comprehensive directive to tackle the country’s persistent Non-Performing Loans (NPLs), Governor Dr. Johnson Asiama has announced.
Speaking at a post-Monetary Policy Committee (MPC) meeting with CEOs of banks on Tuesday, June 3, Dr. Asiama outlined a bold strategy to restore asset quality, improve lending discipline, and safeguard Ghana’s financial system.
“This is part of our broader agenda to restore credit discipline, promote sound lending practices, and ensure the resilience of our financial system,” he emphasized.
Key Provisions in the Upcoming Directive
The central bank’s directive will feature several strong interventions to contain the growing NPL challenge, including:
- Mandatory write-offs of unrecoverable loans that have been fully provisioned, with the exception of related-party exposures.
- A 10% cap on NPL ratios across all banks, effective by December 2026.
- Stricter restructuring rules that will only allow reclassification of loans as performing upon verified sustained repayments.
- Timely collateral recovery enforcement for overdue loans.
- Strengthened credit risk governance, requiring banks to prove the robustness of their risk management systems.
- Monthly reporting of NPLs and increased public disclosure obligations to enhance transparency.
- Blacklisting strategic or wilful defaulters, with restrictions placed on future lending to such individuals or entities.
- Inclusion of blacklisted defaulters in audited financial statements and detailed sectoral NPL breakdowns to improve regulatory and investor visibility.
Financial Sector Resilience in Focus
Dr. Asiama stressed that the move forms part of a wider effort by the BoG to promote a stable and resilient financial ecosystem. The measures are expected to send a clear signal to stakeholders about the central bank’s commitment to cleaning up bank balance sheets and preventing future credit crises.
The new directive comes amid concerns over rising bad loans, which continue to erode bank profitability and weaken confidence in Ghana’s credit markets.
Industry analysts have welcomed the BoG’s move as timely, noting that aggressive and enforceable reforms are crucial for restoring trust and enabling sustainable lending in the economy.
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