The Bank of Ghana (BoG) has heightened regulatory oversight in the banking sector with new directives aimed at promoting ethical pricing, reducing non-performing loans (NPLs), and safeguarding consumers.
Governor Dr. Johnson Asiama has urged commercial banks to reassess their pricing models, eliminate exploitative lending practices, and enhance transparency in customer charges.
During a post-MPC engagement with bank CEOs in Accra, Dr. Asiama strongly criticized the practice of charging interest on dormant credit accounts, labeling it “unacceptable and unethical.”
“Such practices distort customer outcomes, misrepresent the true health of lending portfolios, and violate principles of fair treatment,” he stated.
“We expect all banks to uphold pricing standards that are both commercially defensible and ethically sound.”
Dr. Asiama also addressed concerns regarding digital lending, revealing that the BoG is finalizing comprehensive guidelines set for implementation by August 2025.
The regulations will apply to both banks and non-bank lenders, enforcing stricter licensing requirements, interest disclosure, data privacy protections, and ethical collection practices.
The Governor warned about growing abuses by unregulated online lenders, citing reports of harassment and scams targeting vulnerable borrowers.
“Today, too many Ghanaians, especially young people and informal workers, are being lured by online lending platforms that make bold promises, only to turn around and trap them in cycles of hidden fees, harassment, or worse. We’ve received reports of individuals being threatened, shamed, or scammed, all under the guise of accessing quick loans. We cannot allow this to continue.”
“If your institution is active in digital lending, now is the time to prepare for compliance,” he cautioned, urging banks and fintech companies to align with the upcoming rules.
To restore lending discipline and improve credit risk management, the BoG has mandated that commercial banks publicly disclose the names of willful defaulters in their audited financial statements.
These disclosures will include sectoral breakdowns of NPLs and be submitted to financial sector oversight bodies.
Additionally, the Central Bank has ordered banks to cap their NPL ratios at 10% of gross loans by December 2026.
Loan restructuring rules will also be tightened, with reclassification allowed only after sustained repayments.
Banks must now submit monthly NPL reports and publicly disclose key asset quality metrics.
“These actions form part of our long-term agenda to promote responsible lending, rebuild confidence, and safeguard the financial system,” Dr. Asiama said.
The new interventions underscore BoG’s commitment to restoring transparency and discipline in Ghana’s financial sector while ensuring consumer protection in the evolving digital economy.
