Ghana’s banking sector recorded a slowdown in credit expansion to 15.6% in February 2026, as net lending declined to GH¢14.57 billion. The shift reflects a more conservative approach by banks, with increased preference for low-risk investments over aggressive lending.
Data from the Bank of Ghana’s March 2026 Monetary Policy Report shows the weaker performance compared to February 2025, when net credit flows reached GH¢18.88 billion and growth stood at 25.3%. The latest figures point to tighter lending conditions, shaped by declining risk appetite and a stronger tilt toward government and central bank securities.
A major factor behind the downturn was the sharp fall in lending to the public sector.
Credit extended to government dropped by GH¢1.76 billion, a 27.8% contraction, reversing the GH¢357.58 million increase recorded in the same period a year earlier. This trend aligns with ongoing fiscal tightening, which has reduced the state’s reliance on domestic bank financing.
Private sector borrowing continued to anchor overall lending activity, although momentum weakened. Growth eased to 18.7%, with credit rising by GH¢16.33 billion, compared to 26.9% in February 2025.
Even so, total private sector credit stock climbed to GH¢103.67 billion from GH¢87.33 billion, lifting its share of total banking sector credit to 95.8% from 93.7%.
Industry breakdowns show services dominating credit absorption, receiving GH¢9.16 billion, or 32.6% of total flows well above the previous year’s level.
Mining and quarrying posted a notable surge, with lending jumping from GH¢451.11 million to GH¢2.97 billion. In contrast, the transport, storage, and communication sector experienced a significant decline in credit allocation.
On a price-adjusted basis, private sector credit growth remained strong, aided by easing inflationary pressures.
Real credit growth reached 14.9% in February 2026, up sharply from 3.1% a year earlier, reflecting a steady recovery in real lending conditions since mid-2025.