The Bank of Ghana (BoG) has announced that persons classified as wilful loan defaulters by regulated financial institutions (RFIs) will be barred from accessing credit for up to five years and reported to the Financial Intelligence Centre.
According to the central bank, the move forms part of regulatory measures with the objective of reducing the high levels of Non-Performing Loans (NPLs) threatening the solvency and stability of Ghana’s financial sector.
Per the new directive, banks, specialised deposit-taking institutions (SDIs), and non-bank financial institutions (NBFIs) are required to cut NPL ratios to a maximum of 10% by December 2026.
Institutions that fail to comply will face restrictions on dividend payments, loan portfolio growth, and other business activities.
The central bank has also mandated the immediate write-off of fully provisioned bad loans and is enforcing stronger credit risk management frameworks, including independent credit reviews, early recovery efforts, and accurate credit data reporting.
Aside from these directives, RFIs must publish the names of wilful defaulters in at least two national newspapers and on their websites.
Directors and shareholders linked to non-performing insider loans face disqualification and potential forced divestment.
By: Rainbowradioonline.com/Ghana
