The Bank of Ghana (BoG) has announced that individuals classified as wilful loan defaulters by regulated financial institutions (RFIs) will be barred from accessing credit for up to five years and reported to the Financial Intelligence Centre. This move is part of a comprehensive regulatory effort to curb the growing number of Non-Performing Loans (NPLs), which pose a serious threat to the stability and solvency of Ghana’s financial sector.
According to the new directive, banks, specialised deposit-taking institutions (SDIs), and non-bank financial institutions (NBFIs) must reduce their NPL ratios to a maximum of 10% by December 2026. Failure to meet this target will result in sanctions, including limits on dividend payouts, restrictions on expanding loan portfolios, and curbs on other business operations.
The BoG has also ordered the immediate write-off of fully provisioned bad loans and introduced stricter credit risk management protocols, such as independent loan reviews, early recovery interventions, and accurate reporting of credit information.
Furthermore, RFIs are required to publicly disclose the names of wilful defaulters by publishing them in at least two national newspapers and on their websites. Directors and shareholders involved in non-performing insider loans could face disqualification and mandatory divestment.
The BoG emphasized that these measures are in line with global best practices and are essential to safeguard the financial system while promoting greater credit responsibility and discipline across the banking and finance sector.
