BoG Cracks Down on Hidden Bank Charges, Tightens Oversight in Banking Sector-Ghana

The Bank of Ghana (BoG) is set to introduce a series of tough regulatory measures aimed at curbing hidden bank charges and enhancing transparency in the financial sector. These reforms target excessive and arbitrary fees imposed by commercial banks under the pretext of operational costs. The initiative forms part of the central bank’s broader strategy to protect consumers and reinforce regulatory control over the banking industry.

Dr. Johnson Asiama, Governor of the Bank of Ghana, revealed the plan during a post-Monetary Policy Committee meeting with banking heads. He emphasized that the central bank is finalizing clear policy directives that will compel all licensed banks to adopt standardized and transparent pricing models. The goal is to eliminate opaque fees and ensure that customers are treated fairly across the board.

The new regulations will also address several critical issues plaguing the financial sector, including excessive interest rates on digital lending platforms, lack of transparency in foreign exchange pricing, and the ongoing problem of non-performing loans (NPLs). Dr. Asiama highlighted cases where banks applied interest on inactive credit accounts, sometimes leading to accrued interest surpassing the original loan amount—practices he strongly condemned as unethical.

Implementation of the reforms will be staggered, with some policies set to roll out as early as July and August 2025. Others, like a proposed 10% cap on NPL ratios, are scheduled for introduction in 2026. The phased rollout is designed to give financial institutions sufficient time to adjust and align their operations with the new regulatory expectations.

A standout feature of the reform package is a new directive requiring commercial banks to disclose names of defaulting borrowers and blacklisted entities in their annual reports. This measure is intended to improve credit risk management and deter habitual defaulters, whose actions threaten the stability of the banking system. The BoG’s decisive move marks a significant shift toward greater transparency and accountability in Ghana’s banking sector.

Source: Citi newsroom