In remarks at the Ghana Diaspora Investment Forum 2025, the Bank of Ghana’s First Deputy Governor outlined how the central bank is positioning the macroeconomy, banking sector and payment systems to attract diaspora investment. The speech highlighted plans for a comprehensive directive to address persistently high non-performing loans (NPLs) across regulated financial institutions, alongside ongoing tightening of foreign exchange rules for remittances and steps to develop guidelines for digital credit delivery, with the Bank also looking to develop the digital assets space to broaden investment options. Recent indicators cited included headline inflation falling to 18.4% in May, a provisional current account surplus of USD 2.1 billion in the first quarter of 2025, and record gross international reserves of USD 10.7 billion in April 2025, equivalent to 4.7 months of import cover. The planned NPL directive would mandate write-offs of fully provisioned loans with no realistic recovery prospects (excluding related-party exposures), tighten restructuring rules by requiring sustained repayment before reclassification, enforce timely collateral recovery for overdue loans, and strengthen credit risk governance with a requirement to show effectiveness. The update also referenced the Bank’s cyber and information security directive, the launch of sustainable banking principles, and the Payment Systems and Services Act, 2019 bringing FinTechs within the central bank’s regulatory ambit, supported by the Regulatory Sandbox. The Bank indicated it will continue regulatory policy enhancements to support innovation under appropriate regulation and promote diaspora-tailored financial solutions. It also expects reforms to remittance-related FX rules to lower costs, increase speed, and improve security and transparency, while digital credit guidelines are being developed to balance innovation and financial stability, including lending models enabled by partnerships between lenders and FinTech firms.
Bank of Ghana 2025-06-11
Bank of Ghana signals forthcoming directive to reduce non-performing loans and develop remittance and digital credit rules to support diaspora investment
At the Ghana Diaspora Investment Forum 2025, the Bank of Ghana's First Deputy Governor outlined strategies to attract diaspora investment, including addressing high non-performing loans (NPLs) and tightening foreign exchange rules for remittances. The Bank plans to develop digital credit guidelines and expand the digital assets space. Recent economic indicators show a decline in headline inflation to 18.4% and a current account surplus of USD 2.1 billion. The Bank also highlighted ongoing regulatory enhancements to support innovation and diaspora-focused financial solutions.