Credit conditions in the banking sector remained subdued in February 2026, reflecting banks’ cautious risk-taking stance and a continued preference for Government and Bank of Ghana securities, the Bank of Ghana has disclosed.

According to the March 2026 Monetary Policy Report, total net credit flows slowed to GH¢14.571 billion as of the end of February 2026, compared with GH¢18.881 billion in February 2025.

The Central Bank said the decline was a result of a marked reduction in lending to the public sector, alongside softer credit expansion to the private economy.

Public Sector Credit

Credit to the public sector contracted significantly during the review period.

The public sector credit declined by GH¢1.762 billion (-27.8%) in February 2026, in contrast with the GH¢357.58 million (6.0%) expansion recorded a year earlier.

This decline reflected the ongoing fiscal consolidation, which had resulted in reduced government borrowing from the banking system during the period.

Notwithstanding a moderation in growth in credit to the public sector, the private sector remained the primary recipient of new lending.

Private Sector Credit

Private sector credit expanded by GH¢16.334 billion (18.7 percent) between February 2025 and February 2026, although this reflected a moderation from the increase of GH¢18.523 billion (26.9% growth) recorded a year earlier.

The private sector’s share of total outstanding credit, however, increased to 95.8% from 93.7% in February 2025.

Nominal private sector credit stood at GH¢103.667. billion at end-February 2026, compared with GH¢87.333 billion recorded in February 2025.

Sectoral Breakdown

The sectoral breakdown of private-sector credit flows indicated that the Services sector received the largest proportion of annual credit flows of GH¢9.164 billion in February 2026, significantly higher than the flows of GH¢5.305 billion (23.2%) recorded same time last year.

The Mining and Quarrying sector also received increased flows of GH¢2.965 billion (110.2%) in February 2026 compared with GH¢451.11 million (20.1%) a year earlier.

Credit flows to the transport, storage and communication sector, however, declined significantly during the period under review.