Ghanaian Banks Record GH¢883.7m Bad Debt Write-Off Amid Strategic Ownership and Financing Shifts

Ghana’s banking sector has undergone significant financial adjustments in the first half of 2026, characterized by a sharp rise in bad debt write-offs despite an overall improvement in asset quality. According to data from the Bank of Ghana’s Domestic Money Banks Income Statement, banks operating in the country wrote off GH¢883.7 million in bad debt during the first four months of the year, representing a 35.1% increase compared to the GH¢654.2 million recorded in the same period of 2025. These write-offs, which include provisions for loan losses and depreciation, come at a time when the industry’s Non-Performing Loans (NPL) ratio has shown notable improvement, falling from 23.6% to 18.0%. The total NPL stock also decreased to GH¢20.7 billion, though the private sector remains the primary source of credit risk, accounting for 98.2% of non-performing loans.

Amidst these balance sheet adjustments, major financial institutions are pursuing strategic initiatives to deepen local participation and expand credit access. Access Bank Ghana successfully completed the sale of a 7.44% stake on the Ghana Stock Exchange, involving over 12 million ordinary shares. Managing Director Ms. Pearl Nkrumah noted that the transaction, which saw participation from pension funds and institutional investors, is designed to enhance local ownership and liquidity. Simultaneously, Ecobank Ghana has entered a strategic partnership with Mantrac Ghana to provide flexible equipment financing. This collaboration aims to support Ghanaian-owned businesses in the mining, construction, and agriculture sectors by providing access to heavy machinery, thereby preserving working capital and enhancing local competitiveness in large-scale infrastructure projects.

The banking industry is also seeing a push toward specialized financial education and geographical expansion to drive inclusion. The Islamic Finance Research Institute of Ghana (IFRIG) recently secured landmark partnerships with universities in Malaysia and Indonesia to advance non-interest banking and research, a move Executive Director Dr. Ali Shuaib describes as a "game-changer" for the country’s regulatory ecosystem. On the domestic front, leaders in the Garu District, including the Greater Accra Kusasi Chief and Garu MP Dr. Thomas Anaba, are making a concerted appeal to GCB Bank to establish a branch in the area. They argue that a local presence would facilitate cross-border trade and stimulate the economic potential of the vibrant Garu market.

While the increase in bad debt write-offs highlights persistent challenges in credit recovery—particularly in the agriculture sector where NPL ratios rose to 66.1%—the overall trajectory of the banking sector appears to be one of cautious stabilization. The combination of improved NPL ratios, increased local ownership, and new specialized financing models suggests a shift toward a more resilient financial framework. Moving forward, the focus for Ghana’s financial institutions will likely remain on balancing aggressive debt recovery with the need to expand credit to the private sector to sustain economic growth.