The Bank of Ghana (BoG) has revealed that credit conditions in the banking sector remained subdued as of February 2026, reflecting banks’ cautious approach to risk and a sustained preference for government and central bank securities.
According to the central bank’s March 2026 Monetary Policy Report, total net credit flows declined to GH¢14.57 billion at the end of February 2026, down from GH¢18.88 billion recorded during the same period in 2025.
The slowdown is largely attributed to a sharp contraction in lending to the public sector, alongside relatively softer credit expansion to the private sector.
Public sector credit fell by GH¢1.76 billion, representing a 27.8 percent decline in February 2026. This contrasts with a growth of GH¢357.58 million, or 6.0 percent, recorded a year earlier.
The BoG attributed the drop to ongoing fiscal consolidation efforts, which have reduced government borrowing from the banking sector.
Despite the slowdown in public sector credit, the private sector continues to account for the bulk of lending activity.
Private sector credit grew by GH¢16.33 billion, representing an 18.7 percent increase between February 2025 and February 2026. However, this marks a moderation compared to the GH¢18.52 billion growth, or 26.9 percent, recorded over the same period last year.
The share of private sector credit in total outstanding loans rose to 95.8 percent, up from 93.7 percent in February 2025.
A breakdown of credit flows shows the private sector received GH¢9.16 billion in February 2026, significantly higher than the GH¢5.31 billion, or 23.2 percent growth, recorded in the corresponding period of 2025.
By: Martha Seyram Jackson | Metrotvonline.com | Ghana
