Deloitte Ghana has sounded a note of caution over the Bank of Ghana’s drive to slash non-performing loans (NPLs) to 10% by the end of 2026, describing the target as ambitious and warning that it will require aggressive recovery actions by banks, even as recent trends show improving asset quality.
In its analysis following the presentation of the 2026 national budget, the auditing firm described the banking sector’s ability to meet this goal as a crucial test for Ghana’s broader financial stability.
The warning comes on the back of positive momentum: Ghana’s NPL ratio has already declined from 22.8% in 2024 to 20.4% as of September 2025, thanks to a stronger cedi, loan write-offs, recoveries, and moderate credit growth.
Still, under new NPL reduction guidelines, all regulated financial institutions are now required to submit board-approved strategies outlining how they plan to manage and reduce bad loans over the next year.
Deloitte’s report also highlighted a marked improvement in credit conditions, with average lending rates falling from 30.6% in 2024 to 22.7% in 2025, and projected further declines as macroeconomic stability strengthens.
On restructuring, Deloitte pointed to a major turnaround at the National Investment Bank (NIB) following government interventions, which included GH¢450 million in cash, GH¢1.5 billion in marketable bonds, and GH¢500 million in Nestlé Ghana shares. These measures have transformed NIB’s negative capital adequacy to a robust 23%, fully restoring compliance and enabling the bank to refocus on supporting SMEs and expanding its transaction capacity.
Deloitte further noted that government plans to recapitalize other state-owned banks could help reinforce sector stability, protect depositor confidence, preserve jobs, and prepare these institutions for future listing on the Ghana Stock Exchange.
Source: Apexnewsgh.com
