IntroductionGhana’s financial landscape has long been characterised by a recurring challenge: non-performing loans, bad debts, and business closures. Persistent cycle of non-performing loansGhana’s banking sector has long grappled with the persistent cycle of non-performing loans (NPLs), a problem that has periodically disrupted credit flow and economic growth. With non-performing loans rising, banks are often reluctant to extend credit to high-risk SMEs, particularly in sectors like retail, hospitality, and agriculture. The report notes that the government itself wrote off GH¢3.22 billion in October 2024, reflecting challenges in public sector loan recovery. Moreover, corporate institutions face reputational risks and reduced investor confidence when non-performing loans dominate their balance sheets.