BoG cracks down on hidden bank fees

The Bank of Ghana (BoG) has announced tough new directives aimed at eliminating hidden bank charges and improving transparency in digital lending and foreign exchange pricing.

At a post-Monetary Policy Committee meeting, Governor Dr. Johnson Asiama revealed that the Central Bank is finalizing a policy framework to regulate pricing disclosures and curb exploitative fees by commercial banks.

“We won’t allow banks to disguise unfair charges as operational costs anymore,” Dr. Asiama said. “This must stop.”

He criticized banks that continue to apply interest charges on inactive accounts, which often leads to interest amounts exceeding the original loan. According to him, such practices distort the true profitability of lending portfolios and violate fair treatment principles.

To strengthen oversight, the BoG will also:

• Tighten controls on digital lending interest rates.
• Enforce transparency in foreign exchange pricing.
• Address non-performing loans (NPLs).
• Ensure banks recapitalize to meet financial standards.

Starting July and August 2025, some of these regulations will take effect. Others, such as the proposed 10% cap on NPL ratios, will be enforced in 2026.

Another key reform requires banks to disclose the names of blacklisted borrowers and defaulting entities in their annual financial reports. This move is intended to enhance credit risk management and deter habitual defaulters that pose threats to financial stability.

With these reforms, BoG aims to ensure banks uphold ethical pricing and protect the interests of Ghanaian consumers.