BoG Cracks Down on Hidden Bank Charges

The Bank of Ghana (BoG) is set to implement a new wave of regulatory directives targeting opaque banking charges, questionable digital lending practices, and governance inefficiencies across the banking sector.

The Central Bank’s renewed vigilance signals an aggressive approach towards tightening regulatory oversight and reinforcing the ethical conduct of licensed commercial banks operating in the country.

At the opening session of a post-Monetary Policy Committee (MPC) meeting with bank executives, BoG Governor Dr. Johnson Asiama announced that the Central Bank is finalising robust directives that will bring clarity and accountability to the way banks disclose fees and interest charges.

“We are introducing benchmarks that will improve pricing disclosures. No longer will banks hide behind vague operational costs to impose arbitrary charges on unsuspecting customers” Dr. Johnson Asiama.

The new regulations will prohibit banks from levying unjustified fees and interest charges, especially on inactive credit accounts, an unethical practice that has resulted in some customers owing more than they initially borrowed.

According to the Governor, this is both deceptive and damaging to customer trust and the integrity of the financial sector.

Target

The BoG’s regulatory net also covers digital lending platforms, where interest rates and fees have become increasingly opaque. The new directives will tighten controls on digital financial services by requiring clear, upfront disclosures of all charges related to digital credit products.

Additionally, the Central Bank will enhance transparency in foreign exchange (FX) pricing. This move is aimed at curbing the inconsistencies and hidden margins in forex transactions that disadvantage customers and create instability in Ghana’s currency market.

The Bank of Ghana plans to implement these measures in phases to give financial institutions sufficient time to adjust their internal systems and processes.

Some of the policies, such as clearer interest disclosures and limits on hidden fees, are scheduled to take effect from July and August 2025. Others, like the cap on non-performing loan (NPL) ratios, are expected to be operational by 2026.

This measured approach reflects the regulator’s intent to balance industry reform with operational feasibility.

However, the BoG has made it clear that compliance will not be optional, adding that, banks that fail to meet the new standards will face sanctions.

Curbing Loans

A particularly noteworthy component of the new regulatory framework is the requirement for banks to publish lists of “blacklisted” borrowers – individuals and entities with a history of default in their annual financial statements.

This directive aims to bolster credit risk management practices and reduce the incidence of wilful defaults that continue to erode the sector’s stability.

By shining a spotlight on serial defaulters, the Central Bank hopes to promote responsible borrowing and lending behavior while enhancing the quality of credit portfolios across the banking system.

The broader aim of these measures, according to the BoG, is to restore ethics and sound governance as the foundation of banking operations in Ghana.

The Governor emphasized that all financial institutions must align their pricing models with “ethical and commercially defensible standards.”

“This is not just about regulatory compliance. It’s about restoring fairness, integrity, and professionalism in how banks relate to customers,” Dr. Asiama added.

The Bank of Ghana’s latest crackdown marks a turning point in the country’s financial sector regulation. By enforcing stricter controls on bank charges, improving transparency in digital and FX operations, and enhancing governance structures, the Central Bank is placing consumer protection and systemic stability at the forefront.

As these measures take effect, both banks and borrowers will need to adjust to a more transparent, ethical, and accountable financial sector, one that prioritizes long-term trust over short-term gains.