Ghana's banking sector bad loans have reached 18.90%, exceeding the international financial stability threshold of 10%. The Bank of Ghana (BoG) data shows that Ghana logged an average non-performing loan (NPL) ratio of 18.07% over the 2016–2025 decade.
Ghana's bad loans closed 2025 at 18.90%, after surging to a crisis peak of 26.7% in early 2024.
The situation has greatly impacted the financial stability and asset quality of commercial banks in Ghana. Dr. Richmond Atuahene, a financial and banking consultant, highlights that while regional peers have successfully contained toxic assets, Ghana has suffered from a decade of chronic, double-digit bad loan ratios. Ghana's NPL ratio improved to 15.7% as of August 2026, but remains excessively high.
Ghana's unique structural vulnerabilities, including sovereign debt shocks and government payment arrears, have contributed to its regional outlier status. The 2022–2023 Domestic Debt Exchange Programme (DDEP) forced Ghanaian banks to absorb GHS 19.5 billion in impairment losses.
Unpaid sovereign debts, including US$1.6 billion in energy arrears and GHS 35 billion in contractor payables, have starved local firms of cash, forcing defaults.
Dr. Atuahene attributes Ghana's regional outlier status to these structural vulnerabilities, which do not plague its regional peers to the same extent. Dr. Cassiel Ato Forson, Minister for Finance, has a crucial role to play in addressing these issues. Until legacy debts are settled and judicial debt recovery is streamlined, Ghana will remain West Africa's primary outlier in banking sector bad loans.
The implications of this situation are far-reaching. Ghana's high NPL ratio will continue to impact the financial stability and asset quality of commercial banks in Ghana.
The Bank of Ghana (BoG) will need to continue to monitor the situation closely and take measures to address the issue. The government will also need to take steps to address the underlying structural vulnerabilities that have contributed to Ghana's regional outlier status.