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The Bank of Ghana (BoG) is intensifying efforts to combat the rising issue of non-performing loans (NPLs) in the banking sector, which averaged 24.1% as of June 2024, up from 18.7% the previous year.
The central bank's 2024 Financial Stability Review outlines strategies such as closer collaboration with commercial banks to enhance credit reporting and increase onsite supervision.
The BoG plans periodic thematic reviews of loan portfolios to detect potential losses early, a move driven by the impacts of debt restructuring and ongoing macroeconomic challenges.
With an emphasis on sound credit risk management, the BoG is urging banks to prioritize recapitalization and comply with a directive to suspend dividend payments to bolster resilience against credit risk.
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