The Bank of Ghana (BoG) is intensifying efforts to reform the country’s financial ecosystem by addressing harmful digital lending practices, non-transparent banking fees, and growing default rates. With digital lending expanding rapidly across Ghana, the central bank is introducing regulatory safeguards to curb rising risks and protect vulnerable consumers. The initiative reflects growing concern over predatory behavior by unregulated online lenders and opaque fee structures in traditional banking.
Digital Lending Guidelines Set for August 2025
In a major regulatory intervention, BoG will introduce comprehensive Digital Lending Guidelines by August 2025. These rules will apply to both banks and non-bank financial institutions operating digital loan platforms, with the goal of creating a fairer, more transparent lending environment. The guidelines are expected to bring much-needed structure to an industry that has operated with minimal oversight.
Addressing Harassment and Exploitation in Digital Lending
The central bank has cited increasing reports of unethical behavior in the digital lending space, including harassment, threats, and scams targeting borrowers—especially young people and informal workers. According to BoG Governor Dr. Johnson P. Asiamah, too many Ghanaians are falling into debt traps after being lured by online lenders promising quick cash but delivering hidden fees and abusive recovery methods. “We cannot allow this to continue,” the Governor said, underscoring the urgency of regulatory action.
New Standards for Licensing, Privacy, and Debt Collection
The upcoming guidelines will introduce mandatory licensing and authorization for digital lenders, as well as enforce stricter standards for data privacy and interest rate disclosure. Lenders will be required to provide clear, upfront information about fees and repayment terms, and will be held to ethical standards in debt collection practices. BoG’s goal is to promote responsible innovation in digital finance while ensuring borrowers are treated with fairness and dignity.
Hidden Fees in Card Transactions Under Scrutiny
Beyond digital lending, the Bank of Ghana is also tackling growing concerns over hidden and exploitative fees in card-based banking services. One key area of focus is the Optional Issuer Fees (OIFs) applied on cross-currency card transactions, often without clear customer consent or understanding. The central bank plans to cap these fees at 2% and require all charges to be disclosed upfront before any transaction is completed.
Ethical Pricing and Interest Reform in Traditional Banking
BoG has also flagged unethical pricing models in traditional banking, such as charging interest on dormant credit accounts, which can lead to ballooning debt that exceeds the original loan amount. The Bank has instructed financial institutions to review their pricing frameworks and align them with ethical and commercially sound practices. These steps are part of a broader effort to ensure fair treatment of customers and enhance transparency in banking operations.
Targeting High Default Rates and Loan Restructuring
As part of a parallel initiative, BoG is rolling out reforms aimed at reducing the country’s persistently high non-performing loan (NPL) ratios, which pose systemic risks to financial stability. The new directives will require banks to write off unrecoverable loans, cap NPL ratios at 10% of gross loans by the end of 2026, and enforce stricter loan restructuring and collateral recovery measures. Financial institutions will also be mandated to publicly identify willful defaulters in their disclosures to promote greater accountability.
These sweeping reforms underscore the central bank’s commitment to cleaning up Ghana’s lending landscape and restoring confidence among investors, regulators, and consumers. By tightening oversight and introducing clear, enforceable standards across digital and traditional finance, BoG aims to build a more resilient, transparent, and consumer-friendly financial system. More detailed directives and stronger enforcement mechanisms are expected in the months ahead as the Bank of Ghana deepens its regulatory reach.