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The Bank of Ghana (BoG) has disclosed that Non-Performing Loans (NPL), that is credit that have gone bad in the banking sector increased by 49.4 percent to GH¢20.4 billion in June 2024, up from GH¢13.7 billion in the same period last year.

This, the central bank lamented reflects a deterioration in both domestic and foreign currency-denominated loans in the period under review.

“The asset quality of the banking industry declined during the period under review. The industry’s NPL ratio rose to 24.2 percent in June 2024, from 18.7 percent in June 2023”, the BoG said in its latest Monetary Policy Report.

The report explained that when adjusted for the fully provisioned loan loss category, the industry’s NPL ratio still increased to 10.8 percent in June 2024, from 7.8 percent, reflecting increasing stock of all categories of nonperforming loans.

“The rise in the NPL ratio during the period under review was explained by the higher growth in the NPL stock relative to the growth in total loans”.

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