Deloitte Ghana has cautioned that the Bank of Ghana’s plan to reduce non-performing loans (NPLs) to 10% by the end of 2026, though encouraging, remains highly ambitious and will require banks to undertake stronger loan recovery and cleanup measures. The advisory firm says the sector’s ability to meet the target will be a key indicator of Ghana’s financial system resilience.

In its analysis of the 2026 Budget, Deloitte noted that the industry has already recorded notable progress, with the NPL ratio declining from 22.8% in 2024 to 20.4% as of September 2025. The improvement has been supported by a firmer cedi, loan write-offs, improved recoveries and moderate credit expansion.

Under newly issued Bank of Ghana guidelines, all regulated financial institutions are required to develop and submit board-approved strategies outlining how they intend to manage and reduce bad loans over the adjustment period.

Deloitte also underscored the sharp easing in credit conditions, pointing out that average lending rates have fallen from 30.6% in 2024 to 22.7% in 2025. It expects further reductions as economic conditions stabilise and monetary policy gradually relaxes.

On banking sector restructuring, the firm highlighted significant progress at the National Investment Bank (NIB) following government interventions totalling GH¢450 million in cash, GH¢1.5 billion in marketable bonds and the transfer of GH¢500 million in Nestlé Ghana shares. These measures have shifted the bank from a negative capital adequacy position to a positive 23%, restoring regulatory compliance and allowing NIB to reposition itself toward SME financing and expanded transactional capabilities.

Deloitte added that government plans to recapitalise other state-owned banks could further reinforce the sector, boost depositor confidence, safeguard employment and prepare the institutions for possible future listing on the Ghana Stock Exchange.