Banks in Ghana wrote off GH¢1.23 billion in bad debt during the first six months of 2026, representing a 38% increase from the GH¢893 million recorded over the same period in 2025. Data from the Domestic Money Banks’ Income Statement show that the amount was recorded as loan losses and depreciation. The development is contained in the Bank of Ghana’s July 2026 Monetary Policy Report.
According to the report, although key indicators in the banking sector have improved, significant risks remain. The industry’s non-performing loan (NPL) ratio declined to 16.1% in June 2026, from 23.1% in June 2025. When the fully provisioned loan-loss category is excluded, the NPL ratio also improved, falling from 8.5% to 4.6% over the same period.
The total stock of non-performing loans also declined, dropping to GH¢19.9 billion in June 2026 from GH¢20.7 billion a year earlier. The Bank of Ghana noted that while the improvement in these indicators points to better credit risk conditions, asset quality remains a major concern for the banking sector.
A breakdown of the figures shows that the private sector continues to account for the overwhelming majority of non-performing loans. Its share of total NPLs increased to 98.0% in June 2026, up from 96.4% in June 2025. In contrast, the public sector’s share declined from 3.6% to 2.0% during the same period.
The Bank of Ghana explained that the distribution of non-performing loans largely reflects the pattern of credit allocation across the various sectors of the economy.
