The Governor of the Bank of Ghana, Dr Johnson Asiama, has announced that all banks will soon be required to identify and take decisive action against deliberate loan defaulters to ensure that credit obligations are honored.

According to him, the central bank is implementing a series of regulatory reforms aimed at tightening credit risk management and strengthening governance across the banking sector.

“All banks will be required to identify and take firm actions against deliberate defaulters to ensure that credit obligations are honored. A new Credit Risk Management Directive, aligned with Basel principles, will set minimum standards for underwriting, monitoring, and provisioning,” he stated.

Speaking at an engagement meeting with CEOs of banks in the country on August 13, 2025, Dr Asiama said that as part of the credit directive, the Bank of Ghana is seeking to implement a Bancassurance Directive designed to strengthen governance arrangements, where banks sell insurance products.

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“We will introduce a Bancassurance Directive to strengthen governance in bancassurance arrangements, a Large Exposures Directive to limit concentration risk, and new guidelines on credit concentration to encourage greater diversification across loan portfolios,” he added.

The latest directives from the Central Bank are expected to promote financial stability within Ghana’s banking sector.

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