Publish Names of Loan Defaulters to Strengthen Recovery Efforts – Nelson Kuagbedzi

Finance and tax analyst Nelson Cudjoe Kuagbedzi has urged banks and financial institutions to publish the names of loan defaulters as part of broader efforts to improve loan recovery and promote greater financial discipline within Ghana’s banking sector. 

His comments come on the back of new data from the Bank of Ghana (BoG) showing that the non-performing loan (NPL) ratio fell to 18.9% in December 2025, down from 21.8% a year earlier. While noting the improvement, Mr. Kuagbedzi cautioned that the level of bad loans remains too high, still posing significant risks to the financial system’s stability. 

The BoG report showed that asset quality pressures eased in the second half of 2025, following intensified recovery efforts such as loan restructures and write-offs, amid improving macroeconomic conditions and stricter credit risk management. Excluding loans classified under the loss category, the NPL ratio dropped more sharply to 5.0% from 8.5% the previous year, signaling progress in cleaning up banks’ balance sheets. 

Despite these gains, Mr. Kuagbedzi emphasized that a poor loan repayment culture persists, particularly among large corporate borrowers and politically connected individuals, who often default with minimal consequences. 

“Banks must periodically publish the names of defaulters in newspapers. Nobody wants to be embarrassed. When borrowers know their names could be made public, they will take repayment more seriously,” he told Citi Business News. 

He argued that stronger deterrent measures, including public disclosure of chronic defaulters, would complement existing tools such as credit bureau reporting and court enforcement mechanisms. 

According to Mr. Kuagbedzi, improving loan recovery would free up capital for new lending, reduce borrowing costs over time, and boost confidence in the financial system. 

He also urged financial regulators to provide clearer guidelines on disclosure and enforcement procedures, stressing that transparency must be balanced with due process to prevent reputational harm or abuse. 

“With proper regulation and safeguards, greater transparency will help address moral hazard and instill a culture of responsibility within the financial sector,” he added.