Ghana's Central Bank Cracks Down on Willful Loan Defaults

Ghana's Central Bank Tightens Credit Regulations to Curb Willful Defaults Ghana's central bank, the Bank of Ghana (BoG), has introduced stricter regulations to curb the issue of willful loan defaults. The new measures, announced by BoG Governor Dr. Ernest Addison, aim to enhance transparency and accountability within the financial sector. These regulations mandate monthly reporting and public disclosure of non-performing loans (NPLs). This move is designed to improve the quality of assets and promote sound lending practices. "These actions are part of our broader agenda to restore asset quality, promote sound lending practices, and safeguard the resilience of Ghana’s financial system," explained Dr. Addison. The new rules also require banks to disclose blacklisted willful defaulters in their audited financial statements. This added transparency is expected to sharpen both regulatory and investor focus on systemic credit risks. The BoG believes these measures will strengthen the financial system and protect lenders and investors. The introduction of these regulations marks a significant step towards improving financial stability in Ghana and fostering a more responsible lending environment.