Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, has told banks that the central bank is concerned about broader pricing practices in the banking sector.
Dr Asiama told the banks that the BoG has received reports that some banks continue to apply interest charges on credit accounts that remain inactive, resulting in cases where the accrued interest exceeds the original principal.
Speaking during a post-124 Monetary Policy Committee (MPC) meeting with CEOs of the banks in Accra on Tuesday, June 3, he said that “such practices are unacceptable.”
“They distort customer outcomes, misrepresent the true profitability of lending portfolios, and violate the principles of fair treatment and transparency.
“We expect all banks to review their pricing models and ensure that customer charges reflect ethical and commercially defensible standards,” Dr Asiama stressed.
Dr Asiama further announced to the CEOs of the Banks that the BoG is finalizing comprehensive digital lending guidelines, which will be issued by August 2025.
This is an urgent and necessary intervention, he said.
“Today, too many Ghanaians, especially young people and informal workers, are being lured by online lending platforms that make bold promises, only to turn around and trap them in cycles of hidden fees, harassment, or worse.
“We’ve received reports of individuals being threatened, shamed, or scammed, all under the guise of accessing quick loans. We cannot allow this to continue. The upcoming guidelines will bring clear, enforceable standards to both bank-led and non-bank digital lending models. They will set rules around: Licensing and authorization; Disclosure and interest rate transparency, Data protection and customer privacy, and; Ethical recovery and collection practices.
“Our goal is twofold: To protect borrowers, especially the most vulnerable, from exploitation,; and to enable responsible, well-regulated digital lenders – including banks and their fintech partners lenders – to thrive.
“If your institution is active in digital lending, whether directly or through third parties, now is the time to review your models and prepare for compliance. Let us work together to build a digital lending space that serves people with dignity, fairness, and integrity,” he said.
