The Bank of Ghana (BoG) has issued new directives that could see wilful loan defaulters barred from accessing credit from any regulated financial institution for up to five years.

The measures, aimed at reducing non-performing loans (NPLs) and protecting the profitability and stability of the banking sector, also require banks and other lenders to publish the names of such defaulters twice yearly — on June 30 and December 31 — in at least two national newspapers and on their websites.

Under the new rules, a borrower is considered a wilful defaulter if they:

Fail to repay despite having the means to do so.

Divert loan funds for other purposes.

Secure loans using falsified collateral or fraudulent documentation.

From the date BoG approves a loan write-off, regulated lenders will be prohibited from issuing fresh loans to defaulters for twice the period between the write-off approval and the full repayment.

Borrowers listed as wilful defaulters twice or more in 10 years will face a mandatory five-year ban, or longer if the calculated prohibition period exceeds that duration.

The restrictions will also apply to company directors involved in fund diversion, falsified accounts, or fraudulent transactions.

Defaulters can regain access to credit only after fully repaying all outstanding written-off loans and related fees, and proving their willingness and ability to meet future repayment obligations.

BoG has also introduced stricter prudential limits, requiring banks to maintain an NPL ratio of 10% or lower by end-2026, while microfinance institutions must stay at or below 5%.

From January 1, 2027, lenders exceeding these thresholds will be barred from paying dividends, issuing bonuses, or expanding loan portfolios.