Private Sector Credit Growth Rebounds to 35.5% in August 2026

Private sector credit growth surged to 35.5 percent in August 2026, rebounding sharply from 13.3 percent recorded in August 2025, according to Bank of Ghana Governor Dr Johnson Pandit Asiama. The rebound came alongside a 29.7 percent year-on-year expansion in reserve money, primarily fueled by growth in net domestic assets linked to policy adjustments on reserve requirements. While net foreign assets declined during the period, this moderated the overall increase in reserve money. Broad money supply also rose by 20.4 percent annually, up from 16.6 percent the previous year, reflecting improved liquidity conditions. The Governor highlighted that interest rate moderation played a key role, with the 91-day Treasury bill rate falling to 5.4 percent from 10.3 percent a year earlier and the average sector lending rate dropping to 15.9 percent from 24.2 percent. These developments created a more favorable environment for credit access, supported by increased demand and banks' willingness to ease lending terms. Dr Asiama emphasized that the banking sector remains solvent, profitable, and liquid, with total assets growing 20.5 percent year-on-year to GH¢500.2 billion. This growth was underpinned by strong deposit mobilisation and alternative funding sources. The Capital Adequacy Ratio improved to 19.1 percent from 18.3 percent, while asset quality showed marked improvement, with the Non-Performing Loan ratio declining to 15.7 percent from 20.8 percent. Despite these positive trends, the Governor cautioned that credit risk remains elevated and urged banks to adhere strictly to NPL guidelines to sustain financial system confidence. The Monetary Policy Committee attributed the credit rebound to a combination of policy interventions, lower interest rates, and renewed private sector borrowing activity.