BoG directs banks to cut bad loans to 10% by end of 2026
Dr. Johnson Pandit Asiama, Governor of the Bank of Ghana (BoG), has directed all regulated financial institutions to reduce their non-performing loans (NPLs) to not more than 10 percent by the end of December 2026. He warned that high levels of bad loans continue to constrain lending and weigh on Ghana's economic development.
The industry's NPL ratio declined to 16.1 percent at the end of June 2026, down from over 23 percent during the same period last year. The sector's Capital Adequacy Ratio stood at 20.4 percent. Dr. Asiama stated, "The industry's non-performing loans ratio declined to 16.1 percent as at end-June this year, compared to over 23 percent a year ago, while the Capital Adequacy Ratio stood at 20.4 percent. Capital of that order is what gives a bank the room to take considered risks." He added, "That is progress and not sufficiency, and 16.1 percent remains too high, even if it is fully provisioned. Our regulatory measures require each regulated institution to reduce its ratio to no more than 10 percent by the end of December this year."
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The Bank of Ghana has issued a directive to all regulated financial institutions regarding their non-performing loans. This move aims to strengthen
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