Non-performing loans (NPLs) in Ghana’s banking sector inched up to 18.7 percent in February 2026, from 17.9 percent recorded in January, according to the latest Summary of Economic and Financial Data  for the period ending March 2026, released by the Bank of Ghana.

Non-performing loans closed 2025 at 18.9 percent in December, before easing to 17.9 percent in January 2026, and ticking up again to 18.7 percent in February, reflecting short-term fluctuations in asset quality.

However, on a year-on-year basis, asset quality showed notable improvement, with NPLs declining from 22.6 percent in February 2025, signalling a gradual clean-up of banks’ loan books despite lingering credit risks.

The marginal rise in NPLs comes as borrowing conditions begin to ease. Average lending rates declined to 19.17 percent in February 2026, down from 20.58 percent in January, a development expected to support private sector credit uptake and ease debt servicing pressures.

Meanwhile, the Central Bank is targeting a further reduction in NPLs to 10 percent by the end of 2026, as part of a broader strategy to strengthen asset quality and reinforce financial sector stability.

The move is expected to be driven by tighter credit risk management, loan restructuring efforts, and sustained macroeconomic stability.

Despite the slight monthly uptick in impaired loans, the banking sector continues to show resilience. Key indicators including capital adequacy, profitability, and total asset growth ;remain strong, underscoring improved balance sheet conditions and a more stable financial system.