Bank of Ghana Headquarters

The Bank of Ghana (BoG) has introduced new regulations to address willful loan defaults.

As part of its financial literacy initiative, the Bank of Ghana (BoG) has announced that individuals who deliberately default on loans will be blacklisted for up to five years and reported to the Financial Intelligence Centre.

It mentioned that banks and other financial institutions must also reduce their Non-Performing Loans (NPLs) to 10% by December 2026, or they will face penalties.

The central bank pointed out that financial institutions that fail to comply with BoG regulations will be subject to strict restrictions.

It further said such institutions will not be allowed to distribute dividends to shareholders until they meet the regulatory requirements.

Additionally, BoG will limit the ability of non-compliant institutions to expand their loan portfolios, restricting their ability to engage in new lending activities.

Beyond these measures, affected institutions may also face limitations on other business operations, which could negatively impact their overall performance.

Through these actions, the Bank of Ghana aims to promote financial stability, ensure the soundness of the banking sector, and protect the interests of depositors and other stakeholders.

DR/SA

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