The Bank of Ghana Governor, Dr. Johnson Pandit Asiama, has announced that private sector credit growth in Ghana rebounded to 35.5 percent in August 2026, up from 13.3 percent in August 2025. This significant increase was attributed to a low-interest rate environment, ease in credit stance by banks, and a pick-up in credit demand. The growth in credit was also reflected in the real terms, with private sector growth standing at 29.0 percent, relative to 1.7 percent over the same comparative period.
According to Dr. Asiama, the banking sector's performance was a key driver of the rebound in private sector credit growth. The total assets of the sector increased by 20.5 percent, year-on-year, to GH¢500.2 billion in August 2026, supported by robust deposit mobilisation and growth in other funding sources. This growth in assets was a reflection of the sector's improving financial health.
The Bank of Ghana's Monetary Policy Committee press conference also revealed that reserve money grew strongly by 29.7 percent, year-on-year, in August 2026, compared with 4.5 percent in August 2025. This expansion was underpinned by growth in net domestic assets, mainly reflecting the impact of the policy change on reserve requirements. However, net foreign assets declined, which helped moderate the overall growth in reserve money.
Dr. Asiama also highlighted that broad money supply grew by 20.4 percent, year-on-year, in August 2026, up from 16.6 percent in August 2025. Additionally, interest rates on Government’s short-term instruments moderated further in August 2026. The 91-day Treasury bill rate declined to 5.4 percent from 10.3 percent a year earlier, while the average lending rate for the banking sector also declined to 15.9 percent from 24.2 percent over the same comparative period.
The banking sector's financial health was further reflected in its capital adequacy and asset quality. The Capital Adequacy Ratio of the banking system improved further to 19.1 percent in August 2026 from 18.3 percent in August 2025. Asset quality also improved, with the Non-Performing Loan (NPL) ratio declining to 15.7 percent from 20.8 percent over the same period, supported by the strong rebound in credit growth.
Despite the improvement in the industry’s asset quality, Dr. Asiama noted that credit risk remained elevated. He therefore urged banks to adhere to the NPL guidelines to bolster confidence in the financial system. The Bank of Ghana Governor's comments were made during the 132nd Monetary Policy Committee (MPC) press conference, where he provided updates on the country's economic performance.
The rebound in private sector credit growth is a positive indicator for Ghana's economic growth. With the banking sector remaining solvent, profitable, and liquid, alongside improving asset quality, the sector is well-positioned to support economic growth going forward. The Bank of Ghana will continue to monitor the sector's performance and implement policies to ensure financial stability.
Key points
- Private sector credit growth rebounded to 35.5% in August 2026, up from 13.3% in August 2025.
- The banking sector's total assets increased by 20.5% to GH¢500.2 billion in August 2026.
- The Capital Adequacy Ratio of the banking system improved to 19.1% in August 2026 from 18.3% in August 2025.
