BoG's Regulatory Overhaul to Enhance Financial System's Resilience

Accra, Ghana – 14 August, 2025 – The Bank of Ghana (BoG) has introduced new regulatory measures aimed at enhancing credit discipline, resilience, and stability in the country's financial system. Governor Dr. Johnson Asiama announced these measures during a post-Monetary Policy Committee meeting with heads of banks on August 13, 2025.

Key Regulatory Measures

- Disclosure of "Blacklisted" Borrowers: Commercial banks are now required to disclose details of borrowers with a history of default in their annual accounts, promoting transparency and accountability.

- Cap on Non-Performing Loans (NPLs): A 10% cap on NPLs will be implemented by December 2026, ensuring that banks maintain a healthy loan portfolio and reduce the risk of defaults.

- Stricter Restructuring Rules: Banks will be required to adhere to stricter restructuring rules, and mandatory collateral recovery will be enforced to minimize losses.

- Monthly Disclosures of NPL Data: Banks will be required to disclose NPL data on a monthly basis, including the public identification of willful defaulters in audited financial statements.

- Digital Lending Guidelines: The BoG will release digital lending guidelines by August 2025, outlining new standards for bank-led and non-bank digital lending operations, including fintechs.

Consumer Protection Measures

- Capping Optional Issuer Fees: The BoG plans to cap Optional Issuer Fees (OIFs) on cross-currency card transactions at 2% and require mandatory disclosure of such fees to customers before transactions are completed.

- Fair Pricing Practices: Banks are expected to review their pricing models and ensure that customer charges reflect ethical and commercially defensible standards, eliminating practices that result in accrued interest exceeding the original principal.

Impact on the Financial Sector

These regulatory measures are designed to restore integrity in banking operations, protect customers from predatory financial practices, and ensure the stability of Ghana's financial system. The BoG's proactive approach aims to promote a culture of discipline, fairness, and transparency in the financial sector.

Source – Lead News Online/Leticia Okpoti