The Bank of Ghana (BoG) has announced that individuals identified as wilful loan defaulters by regulated financial institutions (RFIs) will be denied access to credit facilities for up to five years and reported to the Financial Intelligence Centre.
This move is part of an ambitious set of regulatory measures aimed at curbing the growing levels of Non-Performing Loans (NPLs), which continue to pose a threat to the soundness and resilience of Ghana’s financial sector.
According to the BoG, all banks, specialised deposit-taking institutions (SDIs), and non-bank financial institutions (NBFIs) are now required to reduce their NPL ratios to a maximum of 10% by the end of December 2026.
Institutions that do not meet this target will be subject to sanctions, including restrictions on dividend payments, expansion of loan portfolios, and other operational limitations.
The central bank also directed financial institutions to immediately write off all bad loans that have been fully provisioned. It is enforcing stricter credit risk management measures such as independent credit assessments, early recovery actions, and precise credit data reporting.
Moreover, all RFIs are expected to publish the names of wilful defaulters in at least two national newspapers and on their official websites. In addition, directors and shareholders associated with non-performing insider loans risk being disqualified and possibly compelled to divest their interests.
The BoG emphasised that these new directives are in line with international standards and are crucial to safeguarding the stability of Ghana’s financial architecture while promoting credit discipline throughout the sector.
