Bank of Ghana reports decline in non-performing loans, signals improved sector stability
The Bank of Ghana has announced a significant decline in the non-performing loan ratio within the country’s banking sector, placing the current figure at 19.5 percent. The Governor revealed this development during a recent briefing, describing it as evidence of increased stability and improved risk management across financial institutions.
According to the Governor, the decline can be attributed to a combination of factors, including enhanced loan recovery efforts and more stringent internal controls within banks. Financial institutions have adopted improved credit assessment systems and monitoring mechanisms that allow them to identify risks early and take corrective action before loans default.
He noted that the banking sector has been implementing reforms aimed at strengthening capital adequacy and ensuring that banks are better positioned to absorb potential shocks. These reforms, combined with regulatory oversight, have contributed to improved asset quality across the industry.
The Governor added that the reduction in non performing loans is a positive sign for investors and depositors. A healthier loan portfolio signals confidence in the financial system and demonstrates that banks are becoming more diligent in their lending practices. He encouraged banks to sustain efforts that promote responsible lending and transparent reporting.
Despite the progress, he acknowledged that 19.5 percent remains a relatively high figure compared to global standards. He explained that continued progress requires consistent collaboration between regulators, financial institutions, and borrowers. He urged banks to maintain open communication with clients and provide support systems that help businesses stay afloat during difficult economic periods.
The Bank of Ghana has also indicated plans to introduce further regulatory measures that will ensure long term stability. These measures include strengthening loan restructuring policies and encouraging banks to diversify their lending portfolios to reduce risk concentration.
Industry analysts believe that the improved figures reflect growing confidence in Ghana’s broader economic recovery efforts. They argue that the financial sector plays a central role in national development and that the decline in non-performing loans is an encouraging step toward a more resilient economy.
The Governor reiterated the central bank’s commitment to maintaining oversight and supporting policies that promote growth, financial discipline, and consumer protection. He concluded by urging all stakeholders to work together to ensure that the gains made in the banking sector are sustained.
