BoG to ban wilful loan defaulters for 5 years

The Bank of Ghana (BoG) has issued a strong warning to wilful loan defaulters, individuals who intentionally refuse to repay loans despite having the capacity to do so. These defaulters will face a five-year ban from accessing credit from any regulated financial institution in the country.

This move is part of comprehensive measures by the BoG to reduce Ghana’s rising levels of Non-Performing Loans (NPLs), which threaten the stability of the financial system. In addition to the credit ban, defaulters will be reported to the Financial Intelligence Centre for further action.

According to the directive, all banks, specialised deposit-taking institutions (SDIs), and non-bank financial institutions (NBFIs) must reduce their NPL ratios to no more than 10% by December 2026. Failure to meet this target could result in sanctions, including limits on dividend payments and loan portfolio expansion.

The central bank also requires the immediate write-off of fully provisioned bad loans. Financial institutions must implement stronger credit risk controls—such as independent credit reviews, early loan recovery strategies, and accurate credit data reporting.

Furthermore, regulated institutions are now mandated to publish the names of wilful defaulters in at least two national newspapers and on their websites. Directors and shareholders associated with non-performing insider loans risk being disqualified or forced to divest.

The Bank of Ghana emphasized that these actions align with global best practices and are crucial to protecting the integrity of Ghana’s financial system while restoring credit discipline.