Don’t Get Complacent as NPLs Drop to 18%- BoG Warns Banks
The Bank of Ghana (BoG) is urging banks to stay vigilant despite improvements in asset quality, warning that “elevated credit risks remain a concern” even as the economy shows resilience.
Speaking at the Post-130th MPC Heads of Banks meeting on June 16, 2026, at Bank Square, Governor Dr Johnson Pandit Asiama said banks must not become complacent as the sector posts stronger numbers.
“Nevertheless, we must not become complacent. Elevated credit risks remain a concern, and banks must continue to strengthen credit underwriting standards, improve recovery processes, and comply fully with regulatory requirements aimed at reducing non-performing loans to tolerable prudential targets,” he told bank CEOs.
The warning comes as BoG data shows the industry’s Non-Performing Loan ratio has improved, falling to 18.0% from 23.6% a year ago. Capital Adequacy also strengthened to 22.3% from 17.5%, while total assets grew 26.6% to GH¢493.9 billion.
But Dr Asiama stressed that the gains can be reversed if banks relax credit standards.
He said the long-term health of the financial system depends on a strong real sector, and banks must focus on productive lending rather than just chasing growth.
The Governor urged banks to tighten due diligence, improve loan recovery processes, and comply fully with regulations.
He also flagged rising fraud risks linked to forged land titles and third-party collateral, calling on CEOs to enforce strict verification and disciplinary action against staff involved in misconduct.
Story by Hajara Fuseini
Click to read more: https://opemsuo.com/author/hajara-fuseini/
