The Governor of the Bank of Ghana (BoG), Dr. Johnson Pandit Asiama, has directed all regulated financial institutions to reduce their non-performing loans (NPLs) to 10 percent or below by December 31, 2026, as part of efforts to strengthen Ghana’s banking sector and support economic growth.
The directive comes amid continued efforts by the Bank of Ghana to improve credit quality, boost lending to businesses, and enhance financial sector stability.
High Bad Loans Continue to Affect Business Lending
Speaking at the Chartered Institute of Restructuring and Insolvency Practitioners (CIRIP) Ghana–Bank of Ghana Forum in Accra, Dr. Asiama said that although banks have made considerable progress in reducing bad loans, elevated NPL levels continue to limit credit expansion and slow economic development.
He stressed that lowering non-performing loans is essential for improving access to financing for businesses, encouraging investment, and supporting sustainable economic growth in Ghana.
Ghana’s Banking Sector Shows Improvement
The BoG Governor revealed that the banking industry’s NPL ratio declined to 16.1 percent as of June 2026, a significant improvement from more than 23 percent recorded during the same period in 2025.
He also noted that the sector remains financially resilient, with the Capital Adequacy Ratio (CAR) standing at 20.4 percent, indicating that banks continue to maintain capital levels above regulatory requirements.
BoG Pushes for Stronger Financial Stability
The Bank of Ghana expects all regulated banks and financial institutions to intensify loan recovery efforts, improve risk management practices, and strengthen credit assessment processes to achieve the 10 percent NPL target by the end of the year.
The move forms part of the central bank’s broader strategy to build a stronger, more resilient financial sector capable of supporting businesses, increasing private sector lending, and driving Ghana’s long-term economic development.
Source: newsthemegh.com