BoG directs banks to cut bad loans to 10% by end of 2026
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 not more than 10 percent by the end of December 2026, warning that high levels of bad loans continue to constrain lending and weigh on Ghana’s economic development. According to […]
The Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, has directed financial institutions to reduce non-performing loans (NPLs) to 10% by the end of 2026. Currently, the NPL ratio stands at 16.1%, down from over 23% a year ago, but still too high. Asiama emphasized the importance of reducing bad loans to support economic growth and expand credit to the private sector.
He urged banks to adopt stronger credit appraisal processes, board-approved strategies, effective loan recovery mechanisms, and the write-off of unrecoverable exposures. Asiama also highlighted the need for a predictable framework for business rescue financing, emphasizing that banks must maintain sound credit discipline while supporting businesses with recovery prospects.
Brief written by urgent.news from MyJoyOnline Ghana's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
