BoG to bar Banks with High NPL Ratios From Dividend and Bonus Payouts From January 2027
The Bank of Ghana (BoG) has announced new prudential measures that will restrict banks and other regulated financial institutions with elevated non-performing loan (NPL) ratios from paying dividends and staff bonuses from January 2027.
Per the directive, lenders with NPL ratios above 10% will be affected, though a phased approach has been adopted.
Institutions with NPLs between 10% and 15% will be granted a two-year window to restructure and clean up their loan books before sanctions take effect.
However, those with NPLs of 15% or higher will face immediate restrictions, including a ban on dividend payments, staff incentives, and the expansion of loan portfolios.
A stricter threshold of 5% has been set for microfinance institutions, reflecting the sector’s higher vulnerability.
According to the central bank, the policy is designed to strengthen credit risk management, protect depositors, and enhance overall asset quality in the financial sector.
The measure implies that shareholders of banks with high NPLs should not expect dividend distributions, while staff bonuses will also be curtailed if bad loans remain elevated.
Customers may equally experience tighter credit access as banks work to avoid breaching the threshold.
