The Bank of Ghana (BoG) is tightening the screws on Ghana’s credit market, introducing tough sanctions that could sideline wilful loan defaulters from the financial system for up to five years, while imposing strict non-performing loan (NPL) limits on lenders.
The central bank says the measures are designed to protect the profitability and stability of the banking sector, where rising NPLs continue to threaten liquidity and investor confidence.
Under the directive, banks and other regulated lenders must publicly name and shame wilful defaulters twice a year — on June 30 and December 31 — in at least two national newspapers and on their websites. This public exposure is expected to serve as both a deterrent to would-be defaulters and a signal to the market about credit discipline.
A “wilful defaulter,” according to BoG, is not just a borrower who misses payments, but one who refuses to repay despite having the means, diverts loan proceeds for other uses, or obtains credit through fraudulent means such as falsified collateral or documentation. Company directors implicated in such actions will also face the same sanctions.
The crackdown comes with lasting consequences: borrowers listed twice or more in a decade will face a mandatory five-year credit ban — or longer, depending on the repayment timeline. Even a single write-off triggers a restriction period twice the time it takes to fully settle the debt.
For financial institutions, the central bank has set a clear performance line: banks must keep their NPL ratios at or below 10% by the end of 2026, while microfinance institutions must not exceed 5%. From January 2027, those above these thresholds will be barred from paying dividends, granting staff bonuses, or expanding their loan books.
BoG says defaulters can only regain access to credit after fully repaying their obligations and demonstrating the capacity and willingness to meet future repayments — signalling a new era of accountability in Ghana’s lending sector.
