Bank of Ghana’s new headquarters
A new directive from the Bank of Ghana indicates that, starting January 2027, banks and regulated financial institutions with non-performing loan (NPL) ratios above 10% will be barred from paying dividends to shareholders and bonuses to staff.
According to the central bank, lenders with NPL ratios between 10% and 15% will be given a two-year window to clean up their loan books before sanctions take effect.
Institutions with NPLs of 15% or higher, however, will face immediate restrictions covering dividend payments, staff incentives, and loan portfolio expansion.
For microfinance institutions, a stricter threshold of 5% has been set.
The Bank of Ghana explained that the measure is intended to enforce stronger credit risk management, protect depositors, and improve asset quality in the financial sector.
The new rules mean shareholders of weaker banks should not expect dividend payouts, while staff bonuses will also be curtailed if bad loans remain elevated. Customers may additionally face tighter credit access as lenders act to avoid breaching the threshold.
With about 16 months to comply, banks and other financial institutions have a limited window to restructure bad assets or risk losing the ability to reward investors and employees.
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