Ghanaian commercial banks wrote off GH₵1.86 billion in bad debt during the first eight months of 2026, according to the latest report from the Bank of Ghana. This figure represents a sharp 76.3% increase compared to the GH₵1.05 billion recorded during the same period in 2025. The surge in write-offs reflects ongoing efforts by financial institutions to clean up their balance sheets amid evolving economic conditions and fluctuating credit risks.
Despite the high volume of debt write-offs, the Central Bank reported a notable improvement in overall asset quality within the banking industry. The Non-Performing Loan (NPL) ratio fell to 15.7% in August 2026, a significant decline from the 20.8% reported a year earlier. However, the absolute stock of non-performing loans saw a slight uptick to GH₵20.2 billion. This increase was attributed primarily to foreign currency valuation effects rather than a broad deterioration in credit quality.
The private sector remains the primary source of credit risk, accounting for 98.0% of the total stock of non-performing loans. This is a slight increase from the 97.4% share recorded in August 2025. Conversely, the public sector's contribution to NPLs halved, falling from 4.0% to 2.0% over the 12-month period. The Bank of Ghana noted that the improvement in asset quality indicators was broad-based, cutting across various sectors of the economy.
While banks managed to strengthen their asset quality, they also faced rising costs. Total operating expenses for the industry climbed to GH₵13.25 billion by August 2026, representing a 6.4% increase from the previous year. The Central Bank's data suggests that while the industry is successfully navigating loan recovery and disposal, the rising cost of operations and the concentration of risk in the private sector remain key areas of focus for financial stability.