Deloitte Warns BoG’s 10% NPL Target by 2026 will Require Aggressive Recovery Measures
Deloitte Ghana says the Bank of Ghana’s target to cut the banking industry’s non-performing loans (NPLs) to 10% by end-2026 remains highly ambitious, despite notable gains in asset quality over the past year.
In its analysis of the 2026 Budget, the firm noted that achieving the regulator’s new NPL threshold will be a critical indicator of the sector’s resilience and the broader sustainability of Ghana’s financial stability framework.
According to Deloitte, the industry’s NPL ratio has declined from 22.8% in 2024 to 20.4% as of September 2025, supported by a stronger local currency, increased loan recoveries, deliberate write-offs and moderate credit expansion. The central bank’s newly issued NPL reduction guidelines now require banks and other regulated institutions to submit board-approved plans outlining how they intend to manage and reduce impaired assets over the period.
Deloitte also pointed to a significant easing of credit conditions, with average lending rates dropping sharply from 30.6% in 2024 to 22.7% in 2025. Further declines are anticipated as macroeconomic indicators continue to stabilise, the firm added.
On restructuring and recapitalisation, Deloitte highlighted a major turnaround at the National Investment Bank (NIB) following government’s intervention package comprising GH¢450 million in cash, GH¢1.5 billion in marketable bonds and the transfer of GH¢500 million worth of Nestlé Ghana shares. The support has reversed NIB’s negative capital adequacy position, pushing it to 23% and restoring full regulatory compliance. This, Deloitte observed, allows the bank to refocus on SME financing and expand its transactional capabilities.
The firm further noted that planned recapitalisation of other state-owned banks could enhance industry-wide stability, bolster depositor confidence, protect jobs and position these institutions for future listing on the Ghana Stock Exchange.
