BoG clamps down on hidden bank charges; tightens rules on interests, other fees

The Bank of Ghana is set to introduce strict new directives. These will target unclear bank charges, unsafe digital lending, and governance issues in banking. The goal is to protect customers and improve regulatory oversight.

The Central Bank is taking a tougher stance on commercial banks. It warns that arbitrary fees for operational costs will no longer be accepted. Governor Dr. Johnson Asiama announced this at a meeting with bank heads. He stated that comprehensive policy directives are being finalized. These will establish clear pricing disclosure benchmarks for licensed banks.

Additionally, the Bank will tighten controls on interest rates for digital platforms. It aims to enhance transparency in foreign exchange pricing as well. The Bank will also address non-performing loans (NPLs) and ensure banks are recapitalized.

Dr. Asiama noted that some banks charge interest on inactive credit accounts. This can lead to accrued interest exceeding the original amount borrowed. He called such practices unacceptable and harmful to customers. They distort outcomes and misrepresent lending profitability.

All new regulations will be implemented in phases. Some take effect in July and August 2025, while others, like a 10% cap on NPL ratios, start in 2026. A key measure requires banks to publish details of “blacklisted” borrowers annually. This aims to improve credit risk management and reduce chronic defaults threatening banking stability.