Banks to disclose blacklisted willful loan defaulters in their audited financial statements – Dr Asiama

Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, has announced that the central bank will soon issue a comprehensive directive to tackle persistently high Non-Performing Loans (NPLs) across regulated financial institutions.

He said the upcoming measures will mandate write-offs of fully provisioned loans with no realistic recovery prospects, excluding related-party exposures; capping NPL ratios at 10% of gross loans by December 2026; tightening restructuring rules, requiring sustained repayment before reclassification; enforcing timely collateral recovery, especially for overdue loans; strengthening credit risk governance and require proof of effectiveness; enhancing NPL reporting and disclosure, with monthly submissions and public transparency; restricting further credit to strategic or willful defaulters and share their identities with key financial sector oversight bodies.

This forms part of new measures to restore credit discipline, Dr Asiama said during the post-124th Monetary Policy Committee (MPC) meeting with Chief Executives of banks in Accra on Tuesday, June 3.

“As part of this directive, banks will also be required to disclose blacklisted willful defaulters in
their audited financial statements, along with sectoral breakdowns of NPL exposures.

“This added layer of transparency will sharpen both regulatory and investor focus on systemic credit risks. 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,” he said.

Dr Johnson Pandit Asiama further told the banks that the central bank is concerned about broader pricing practices in the banking sector.

He said that the BoG has received reports that some banks continue to apply interest charges on credit accounts that remain inactive, resulting in cases where the accrued interest exceeds the original principal.

“Such practices are unacceptable,” he stressed.

“They distort customer outcomes, misrepresent the true profitability of lending portfolios, and violate the principles of fair treatment and transparency.
“We expect all banks to review their pricing models and ensure that customer charges reflect ethical and commercially defensible standards,” Dr Asiama added

Dr Asiama further announced to the CEOs of the Banks that the BoG is finalizing comprehensive digital lending guidelines, which will be issued by August 2025.

This is an urgent and necessary intervention, he said.

“Today, too many Ghanaians, especially young people and informal workers, 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.

“We’ve received reports of individuals being threatened, shamed, or scammed, all under the guise of accessing quick loans. We cannot allow this to continue. The upcoming guidelines will bring clear, enforceable standards to both bank-led and non-bank digital lending models. They will set rules around: Licensing and authorization; Disclosure and interest rate transparency, Data protection and customer privacy, and; Ethical recovery and collection practices.

“Our goal is twofold: To protect borrowers, especially the most vulnerable, from exploitation,; and to enable responsible, well-regulated digital lenders – including banks and their fintech partners lenders – to thrive.

“If your institution is active in digital lending, whether directly or through third parties, now is the time to review your models and prepare for compliance. Let us work together to build a digital lending space that serves people with dignity, fairness, and integrity,” he said.