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Deloitte Ghana is cautioning that the Bank of Ghana’s (BoG) plan to slash the banking sector’s non-performing loans (NPLs) to 10% by the end of 2026 will require aggressive and sustained recovery efforts, even as asset quality shows steady improvement.
In its post-2026 budget review, the auditing and advisory firm described the target as “ambitious”, noting that how banks navigate this directive will be a major test of Ghana’s financial stability in the coming years.
Ghana’s NPL ratio has been declining, dropping from 22.8% in 2024 to 20.4% as of September 2025. Deloitte attributes this to:
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- A stronger cedi
- Loan write-offs
- Improved recoveries
- Slower, more cautious credit expansion
However, the firm believes that bringing NPLs down to 10% within just over a year will require banks to deploy more aggressive collection strategies and tighten credit risk management across the board.
Under the BoG’s revised NPL reduction guidelines, all regulated financial institutions must present board-approved NPL reduction strategies. These plans must outline:
- Recovery targets
- Write-off policies
- Measures to strengthen credit underwriting
- Timelines for achieving annual reductions
Deloitte notes that the regulator’s directive signals the start of a more assertive push to clean up the sector’s loan books and improve credit discipline.
The financial advisory firm also highlighted a notable improvement in lending conditions.
Average lending rates have dropped from 30.6% in 2024 to 22.7% in 2025, and Deloitte expects further declines as Ghana’s macroeconomic indicators—including inflation and exchange rate volatility—continue to stabilise.
Lower borrowing costs could stimulate private-sector credit demand, provided banks are confident in the recovery of loans.
Deloitte pointed to the National Investment Bank (NIB) as a major turnaround story from the government’s banking reforms.
Interventions included:
- GH¢450 million cash injection
- GH¢1.5 billion in marketable bonds
- Transfer of GH¢500 million worth of Nestlé Ghana shares
These measures have transformed NIB from a precarious position of negative capital adequacy to a robust 23%, restoring full regulatory compliance.
The bank is now repositioning to:
- Refocus on small and medium-scale enterprises (SMEs)
- Expand transactional and corporate banking services
According to Deloitte, the government’s plan to recapitalise other state-owned banks is expected to:
- Strengthen the broader banking sector
- Safeguard depositor funds
- Protect jobs
- Prepare the institutions for future listing on the Ghana Stock Exchange
The firm believes that successful recapitalisation and NPL reduction will be pivotal for restoring long-term confidence in Ghana’s banking sector.
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