The Bank of Ghana (BoG) has rolled out sweeping new measures to clamp down on Ghana’s rising non-performing loans (NPLs), including an unprecedented five-year ban on access to credit for borrowers deemed to be “wilful defaulters.”
In a decisive directive to commercial banks and other regulated lenders, the central bank said institutions must now name and shame such borrowers twice a year on June 30 and December 31 by publishing their details in at least two national newspapers and on their websites.
Who Qualifies as a Wilful Defaulter?
BoG defines a wilful defaulter as any borrower who fails to repay despite having the means, diverts loan proceeds to unauthorised uses, or secures a loan using fraudulent collateral or falsified documents. Company directors implicated in fund diversion, misrepresentation, doctored accounts, or other fraudulent acts will also face the same sanctions.
“Borrowers who wilfully default undermine the integrity of our financial system. We are taking decisive action to protect the industry and promote responsible lending and borrowing,” the BoG said in its statement.
The Ban and Its Triggers
Once the central bank approves a loan write-off, no financial institution may extend fresh credit to the defaulter for a period twice as long as the gap between the write-off approval and the full debt settlement. Repeat offenders, those listed two or more times within 10 years, will automatically face a five-year ban, or longer where the calculated period exceeds that.
Credit access may only be restored after full repayment of all written-off amounts plus fees, subject to the lender’s reassessment of the borrower’s repayment capacity and willingness.
Tightening the NPL Threshold
In a move to prevent systemic risk, BoG has also set a maximum NPL ratio of 10% for banks and other lenders, effective end-2026. Microfinance institutions will keep their existing 5% ceiling. From January 1, 2027, any institution exceeding these thresholds will be barred from paying dividends, issuing bonuses, or expanding its loan portfolio until compliance is restored.
The measures, the BoG says, are aimed at “future-proofing” Ghana’s banking sector, ensuring resilience, and fostering a culture of financial discipline.
