The Governor of the Bank of Ghana, Dr. Johnson Asiama, has expressed confidence that Ghana’s banking sector will record a further decline in non-performing loans (NPLs) as newly introduced regulatory guidelines begin to take effect.

Speaking after the conclusion of the central bank’s 130th Monetary Policy Committee meeting in Accra, Dr. Asiama said recent policy measures and tighter supervisory controls introduced by the Bank of Ghana are already improving the quality of loans held by commercial banks.

According to him, the new guidelines are designed to strengthen risk management practices and improve credit administration systems across the banking industry. He explained that these measures will help banks reduce bad loans while also improving their overall financial performance.

“We expect that the non-performing loans ratio will go down further for commercial banks due to some of the guidelines that have been put in place,” he stated.

Dr. Asiama noted that despite economic challenges experienced in recent years, Ghana’s banking sector remains stable, liquid, and well-capitalised. He added that the central bank remains committed to protecting financial sector stability and ensuring that banks operate within stronger regulatory frameworks.

The Governor further stressed that the implementation of prudent banking policies will support long-term growth within the financial sector and boost confidence among investors and customers.

Industry analysts believe that a continued decline in non-performing loans could strengthen lending activities, improve profitability for banks, and contribute positively to Ghana’s broader economic recovery.