A non-performing loan (NPL) is a bank loan that is subject to late repayment or is unlikely to be repaid by the borrower in ful. NPLs erode a bank’s interest income, leading to financial losses and reduced ability to lend. They can also lower a banks' profits and concurrently heightens its risk exposure, negatively affect credit rating and potentially leading to financial instability. According to the Bank of Ghana (May 2025), non-performing loans remain a concern due to lingering effects from the domestic debt restructuring process.

Non-Performing Loans

Source: BoG