Ghana’s central bank is rolling out sweeping measures to combat persistently high levels of non-performing loans (NPLs) and to tighten oversight of digital lending practices, according to Bank of Ghana Governor Dr. Johnson Asiama.

Speaking at a post-Monetary Policy Committee meeting in Accra on Tuesday, Dr. Asiama said the Bank of Ghana (BoG) will soon issue a directive requiring commercial banks to disclose the names of blacklisted willful loan defaulters in their audited financial statements. The move is part of a broader regulatory effort aimed at restoring credit discipline and improving transparency across Ghana’s financial sector.

“This added layer of transparency will sharpen both regulatory and investor focus on systemic credit risks,” Dr. Asiama told an audience of banking executives.

The upcoming directive will also include several other key provisions:

• Mandatory write-offs of fully provisioned loans deemed unrecoverable, excluding related-party exposures
• A cap on NPL ratios at 10% of gross loans by December 2026
• Stricter restructuring rules, requiring evidence of sustained repayment before loans can be reclassified
• Enhanced credit risk governance and monthly NPL reporting
• Restrictions on further credit to strategic or willful defaulters, with shared identification across oversight bodies

The directive is designed to restore asset quality, enforce lending discipline, and reinforce the overall resilience of Ghana’s banking system, Dr. Asiama said.

In addition to addressing credit risk, the central bank expressed concern over questionable pricing practices in the sector. Dr. Asiama noted that some banks continue to charge interest on inactive credit accounts, resulting in instances where the accumulated interest exceeds the original principal.

“Such practices are unacceptable,” he said. “They distort customer outcomes, misrepresent the true profitability of lending portfolios, and violate the principles of fair treatment and transparency.”

The BoG is calling on all banks to review their pricing models to ensure charges are ethical and commercially justifiable.

Separately, Dr. Asiama announced that the central bank is finalizing comprehensive digital lending guidelines, expected to be released by August 2025. The new framework will regulate both bank-led and non-bank digital lending operations, setting enforceable standards in areas such as licensing, interest rate disclosure, data privacy, and ethical debt collection.

“Too many Ghanaians are being lured by online lenders who trap them in cycles of hidden fees, harassment, or worse,” said Dr. Asiama. “We cannot allow this to continue.”

The guidelines aim to balance consumer protection with enabling legitimate digital lenders—including fintechs and bank partners—to operate within a regulated and responsible framework.

“If your institution is active in digital lending, directly or through third parties, now is the time to prepare for compliance,” the governor warned.

Source:TheDotNews