Dr. Bernard Osei Tutu, CEO of Dusk Capital, has issued a stark warning that Ghana’s persistently high non-performing loan (NPL) ratio of 23.1% continues to stifle business credit access despite broader economic recovery.
Speaking on structural risks, he urged immediate policy intervention to drive NPLs into single digits, arguing current levels deter commercial banks from lending to SMEs and consumers even amid improved macroeconomic conditions.
Central bank data shows NPLs declined marginally from 24.2% in June 2024 to 23.1% by June 2025—a trend Dr. Osei Tutu called insufficient. “Until we drastically reduce NPLs, banks will perceive lending as risky despite lower systemic risk,” he stated, highlighting flawed address systems and poor borrower traceability as core obstacles. He proposed mobilizing institutions like Rent Control to strengthen verification frameworks.
The financial expert welcomed recent policy coordination, including the Bank of Ghana’s 300-basis-point rate cut to 25% and plunging treasury bill yields. “Lower T-bill rates reduce banks’ appetite for government securities, incentivizing business lending,” he noted, but cautioned that banks must simultaneously tighten risk controls to prevent renewed NPL surges.
Dr. Osei Tutu framed the improved capital adequacy ratio (up to 19.7%) and cooling inflation as foundations for transformation. “These are exciting times for businesses if NPLs are curbed,” he emphasized, praising government efforts while urging sustained fiscal-monetary alignment. Stakeholders now watch whether accelerated NPL reduction will finally unlock credit flows to Ghana’s private sector.
