Review pricing, lending metrics and publish blacklisted loan defaulters – BoG directs banks

The Bank of Ghana is increasing scrutiny of the banking sector. They have issued new directives to promote ethical pricing and protect consumers. The goal is to curb non-performing loans as well.

Governor Dr. Johnson Asiama urged banks to review their pricing models. He wants them to eliminate exploitative lending practices and ensure transparency in customer charges. During a meeting with bank CEOs in Accra, he condemned interest on dormant credit accounts. He called this practice “unacceptable and unethical.”

Dr. Asiama stated that such practices distort customer outcomes and misrepresent lending portfolios. He expects banks to uphold pricing standards that are commercially defensible and ethically sound.

Regarding digital lending, Dr. Asiama announced that the BoG is finalizing guidelines by August 2025. These guidelines will apply to both banks and non-bank lenders. They will introduce rules for licensing, interest disclosure, data privacy, and ethical collection practices.

The Governor warned about unregulated online lenders abusing vulnerable borrowers. Many Ghanaians, especially young people, are lured by these platforms with false promises. Reports indicate individuals face threats or scams while seeking quick loans.

He emphasized the need for compliance among institutions involved in digital lending. Banks must prepare for upcoming regulations alongside their fintech partners.

To improve credit risk management, commercial banks must disclose names of willful defaulters in annual financial statements. This includes a breakdown of non-performing loans (NPLs) shared with oversight bodies.

Additionally, the Central Bank has directed banks to cap NPL ratios at 10% by December 2026. Restructuring rules will be tightened; loans can only be reclassified after sustained repayments.

Banks must submit monthly NPL reports and disclose key asset quality metrics publicly. Dr. Asiama stated these actions aim to promote responsible lending and rebuild confidence in the financial system.

These interventions show a commitment to restoring discipline and transparency in Ghana’s financial sector while supporting consumer protection in the digital economy.