Governor of the Bank of Ghana, Dr. Johnson Asiamah, has called for urgent need to reduce the high levels of non-performing loans (NPLs) in the banking sector, stressing that the issue is a major challenge to financial stability.
Speaking on financial sector reforms during the National Economic Dialogue 2025, Dr. Asiamah noted that while the Financial Sector Strengthening Strategy under the fund program is ongoing, the alarming NPL figures remain a significant concern.
“There is a local bank with an NPL ratio of about 81%, meaning for every 100 Ghana cedis lent, 81 cedis are not recovered. Another local bank has an NPL ratio of 62%, while the highest among foreign banks is around 21%,” he revealed on Tuesday, March 4.
Dr. Asiamah explained that while banks bear some responsibility, the situation has been worsened by the Domestic Debt Exchange Programme, which has affected loan recoveries. He emphasised that high NPL ratios contribute to elevated lending rates, making it difficult for businesses to access affordable credit.
“Going forward, we have to find out ways to reduce the high non-performing loans ratios across banks and for me, I’m particularly interested in the local banks, especially the government-owned banks. We’ll be sitting down with them. We’ll be sitting down with the industry association of banks; we started those conversations already, and we believe that if we can lower the NPL ratios of banks, if we can stabilise the fiscal side of things, we should see lending rates trending down quickly,” he said.
Dr. Asiamah reaffirmed the Bank of Ghana’s commitment to making tough but necessary decisions to address the problem, adding that “We are resolved to act, and we want the public to understand why certain decisions will be taken.”
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