Bank of Ghana Targets Ethical Lending, NPL Caps and Digital Loan Reform in Sweeping New Directives
ACCRA – June 4, 2025 — The Bank of Ghana (BoG) has rolled out a robust package of new regulatory directives to reform pricing practices, tackle rising non-performing loans (NPLs), and curb predatory digital lending, in what Governor Dr. Johnson Asiama described as a decisive effort to restore integrity and consumer confidence in the financial system.
Speaking at a post-Monetary Policy Committee (MPC) meeting with CEOs of commercial banks in Accra, Dr. Asiama condemned unethical lending practices and called for a nationwide review of bank pricing models.
“The application of interest on dormant credit accounts is unacceptable and unethical,” he declared. “Such practices distort customer outcomes, misrepresent the true health of lending portfolios, and violate principles of fair treatment.”
He urged banks to eliminate exploitative charges and embrace full transparency in all customer-facing operations.
NPL Crackdown and Disclosure Mandates
As part of its asset quality reforms, the BoG is enforcing the following measures:
- Cap NPL ratios at 10% of gross loans by December 2026
- Tighten loan restructuring rules, only allowing reclassification after sustained repayments
- Require monthly NPL reporting and public disclosure of asset quality metrics
- Name and shame wilful defaulters in banks’ audited annual statements, alongside sectoral breakdowns of exposures
These directives are aimed at promoting credit discipline, boosting transparency, and strengthening financial oversight.
New Digital Lending Guidelines Coming by August 2025
With the rise of online and app-based loans, the BoG is also set to launch comprehensive digital lending regulations. These upcoming guidelines will apply to both bank and non-bank lenders, and will cover:
- Mandatory licensing
- Clear interest disclosure rules
- Data privacy protections
- Ethical debt collection standards
Dr. Asiama raised concerns about the abuse of digital lending platforms, particularly targeting young people and informal workers. The BoG has received reports of harassment, hidden fees, and even scams from unregulated fintech lenders.
“We cannot allow Ghanaians to be threatened, shamed, or scammed under the guise of quick loans,” the Governor said. “If your institution is active in digital lending, now is the time to prepare for compliance.”
Reform Signals Financial Sector Reset
This is the second wave of sweeping reforms announced this week by the Central Bank, following directives to enforce mandatory loan write-offs, restrict lending to strategic defaulters, and strengthen credit governance frameworks.
According to Dr. Asiama, the BoG’s interventions aim to rebuild confidence, protect consumers, and safeguard Ghana’s evolving digital financial ecosystem.
The Governor concluded:
“These actions form part of our long-term agenda to promote responsible lending, rebuild confidence, and safeguard the financial system.”
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