Ghana’s banking sector recorded a slowdown in lending activity in February 2026, with credit growth easing to 15.6 percent as financial institutions adopted a more cautious approach to loan expansion.
According to the Bank of Ghana’s March 2026 Monetary Policy Report, total net credit flows dropped to GH¢14.57 billion, down from GH¢18.88 billion in February 2025, when credit growth stood at a stronger 25.3 percent.
The report attributes the slowdown to tighter lending conditions, as banks increasingly shifted their portfolios towards lower-risk investments such as government and central bank securities.
A key factor behind the contraction was a sharp decline in public sector borrowing from the banking system. Credit to government fell by GH¢1.76 billion, representing a 27.8 percent drop, compared to a modest expansion recorded the previous year. This reflects ongoing fiscal consolidation efforts that have reduced government reliance on domestic bank financing.
Private sector lending remained the dominant driver of credit activity, though growth also moderated. Expansion slowed to 18.7 percent, with total private sector credit increasing by GH¢16.33 billion, compared to 26.9 percent growth in the same period of 2025.
Despite the slowdown, private sector borrowing continues to account for the bulk of bank lending, with outstanding credit rising to GH¢103.67 billion from GH¢87.33 billion. Its share of total credit also increased to 95.8 percent from 93.7 percent.
Sectoral distribution of credit shows a strong concentration in services, which attracted GH¢9.16 billion, representing 32.6 percent of total credit flows. The mining and quarrying sector also saw a significant increase, rising sharply from GH¢451.11 million to GH¢2.97 billion.
However, lending to the transport, storage, and communication sector declined notably over the period.
On a real basis, private sector credit recorded stronger performance due to easing inflation pressures. Real credit growth stood at 14.9 percent in February 2026, compared to 3.1 percent a year earlier, reflecting an improving trend in underlying economic activity since mid-2025
