The Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama has called on banks to prioritize saving viable businesses facing temporary financial burden, stressing that disciplined restructuring and responsible lending can preserve jobs, protect creditors and strengthen Ghana’s economic recovery.
Speaking at a forum organized with the Chartered Institute of Restructuring and Insolvency Practitioners on non performing loans and financing for companies undergoing restructuring, Dr. Asiama highlighted the importance of differentiating between businesses facing short term cash flow difficulties and those that are unsustainable. He urged financial institutions to provide post commencement financing to firms with credible restructuring potential rather than forcing liquidation, stressing that this approach will would safeguard employment and sustain supply chain. The Governor also directed banks to reduce their non performing loan ratio to below 10% by December 2026 down from the current 16.1 percent. He further directed the banks to strengthen credit appraisal systems and adopt effective recovery costs and writing off fully provisioned exposures with no realistic prospect of recovery. He explained that high non performing loans tie up capital, raise recovery costs and restrict new lending particularly for small and medium businesses thereby eroding economic growth.
Recent data shows that the non performing loans ratio has dropped from 23.1% to 16.1% in June 2026 while the capital adequacy ratio has elevated to 20.4% giving banks stronger buffers to absorb shocks. Total banking assets grew by 30.7% year on year to GHs502.4 billion in June 2026. Dr. Asiama concluded that the directive reflects a balance strategy to support sustainable distressed businesses while upholding stricter credit discipline to ensure to ensure Ghana’s financial sector remains resilient and growth oriented.
BY; Godsway Kanku