The Bank of Ghana (BoG) has introduced stringent measures aimed at curbing the rising tide of non-performing loans in the banking sector. Under the new directive, individuals who deliberately refuse to repay loans despite having the capacity to do so will be barred from accessing credit from any regulated financial institution for a period of five years.
The move forms part of broader efforts by the central bank to strengthen credit discipline and safeguard the financial system.
According to the BoG, the new restrictions apply to borrowers who:
- Have the financial means to repay but choose not to
- Misapply loan funds for purposes other than agreed
- Submit fake or misleading collateral documents
In a bid to promote transparency and deter misconduct, banks are now mandated to publish the names of wilful defaulters twice annually.
Additional sanctions include a five-year ban from accessing credit, reporting of offenders to the Financial Intelligence Centre and restrictions on company directors found complicit in fraudulent loan activities.
The BoG has also set a ceiling for non-performing loans, directing all banks to maintain a maximum NPL ratio of 10% by the year 2026.
Institutions that fail to meet this benchmark may face regulatory consequences, including limitations on dividend payments and curbs on the expansion of their loan books.
The central bank says these measures are necessary to restore confidence in the financial sector and ensure that credit facilities are extended to responsible borrowers.
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