Commercial banks will now be required to disclose blacklisted willful defaulters in their audited financial statements, along with sectoral breakdowns of non-performing loan (NPL) exposures.
The move is part of new measures instituted by the Bank of Ghana (BoG) to enhance transparency and strengthen both regulatory and systemic credit risk management.
“Commercial banks are also required to restrict further credit to strategic or willful defaulters and share their identities with key financial sector oversight bodies,” Bank of Ghana Governor Dr. Johnson Asiama disclosed during a meeting with Managing Directors and Chief Executive Officers of commercial banks at the Bank Square in Accra.
The meeting formed part of the Bank of Ghana’s post-Monetary Policy Committee engagements with key financial stakeholders.
Tackling High NPLs Among Banks
Addressing the gathering, Dr. Asiama announced that commercial banks will now be required to cap their Non-Performing Loan Ratios at 10 percent of gross loans by December 2026.
He further indicated that banks are expected to tighten restructuring rules by requiring sustained repayments before any reclassification.
He also directed banks to enhance their NPL reporting and disclosures, including monthly submissions and improved public transparency.
“These actions are part of our broader agenda to restore asset quality, promote sound lending practices, and safeguard the resilience of Ghana’s financial system,” Dr. Asiama emphasized.
Digital Lending Regulations Coming
The BoG Governor revealed that the central bank is finalizing comprehensive digital lending guidelines, which will be issued by August 2025.
He expressed concern over how many Ghanaians 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.”
“As a regulator, we cannot allow this to go on. Hence the need to come up with these new regulatory measures. These measures will bring clear, enforceable standards to both bank-led and non-bank digital lending models,” he stated.
According to Dr. Asiama, the new rules will target:
Licensing and authorization
Disclosure and interest rate transparency
Data protection and customer privacy
Ethical recovery and collection practices
He advised commercial banks engaged in digital lending—either directly or through third-party partnerships—to review their operations and prepare for compliance.
Boosting Governance in Foreign-Owned Banks
Dr. Asiama also announced plans by the Bank of Ghana to issue a directive aimed at strengthening local accountability and board independence in foreign-owned banks operating in Ghana.
He raised concerns about the outsourcing of major credit and risk decisions to offshore principals who are not subject to Ghana’s regulatory oversight.
“These decisions are often passed down to Ghanaian boards for formal ratification, giving the appearance of local governance, when in fact, core decisions have already been made externally,” the Governor noted.
He warned that Ghana-based boards must not serve as rubber stamps for instructions issued from abroad.
“This undermines the very basis of effective governance and creates unacceptable regulatory blind spots,” he added.