The volume of non-performing loans (NPLs) in Ghana’s banking sector declined to GH¢19.9 billion in June 2026, indicating an improvement in loan repayment performance and financial sector conditions.
New data from the Bank of Ghana (BoG) shows that the stock of non-performing loans fell from GH¢20.7 billion recorded in June 2025 to GH¢19.9 billion at the end of June 2026.
Ghana’s NPL Ratio Records Significant Improvement
The banking industry also recorded a notable improvement in its non-performing loan ratio, which measures the proportion of loans that are not being serviced as expected.
According to the latest Bank of Ghana data, the industry’s NPL ratio dropped to 16.1% in June 2026, compared with 23.1% in June 2025.
This represents a significant improvement in the quality of bank loans and suggests that measures aimed at strengthening loan recovery, credit risk management and banking sector stability are yielding results.
The NPL ratio adjusted for the fully provisioned loan-loss category also improved considerably, falling from 8.5% in June 2025 to 4.6% in June 2026.
Private Sector Accounts for Majority of Bad Loans
Despite the overall decline in non-performing loans, private sector borrowers continued to account for the vast majority of NPLs in Ghana’s banking industry.
The private sector’s share of total non-performing loans increased from 96.4% in June 2025 to 98% in June 2026.
In contrast, the contribution of the public sector to total NPLs declined significantly over the same period, falling from 3.6% to 2%.
Bank of Ghana Data Shows Improving Banking Sector Conditions
The latest figures highlight developments in Ghana’s banking sector, particularly in relation to credit quality and loan performance.
The reduction in the NPL ratio could help strengthen confidence in the banking industry while supporting improved financial stability and credit risk management.
However, the continued dominance of private sector borrowers among non-performing loans remains an important issue for banks and financial regulators as they work to improve responsible lending, loan repayment and access to credit for businesses and individuals.
The latest Bank of Ghana figures will be closely watched by investors, financial institutions, businesses and policymakers as Ghana continues efforts to strengthen the financial sector and broader economy.
Source: newsthemegh.com