The Bank of Ghana is projecting a further easing in the overall stance on corporate loans in the first two months of 2024, driven by a net ease in the stance on all sub-categories.

According to its January 2024 Monetary Policy Report, credit demand by corporates is projected to be stronger in January and February 2024.

However, it is forecasting a rebound in demand for household loans in the first two months of 2024, in line with the expected increase in demand for mortgages and consumer credit.

It stated banks generally maintained a tight stance on loans to enterprises and households in December 2023 although they reported a net ease in the stance on enterprise loans during the December 2023 Credit Conditions Survey round, relative to the October 2023 survey round.

The net easing in the overall credit stance to enterprises was on the back of an eased stance on all sub-categories of corporate loans except loans to large enterprises.

The stance on loans to households tightened during the last two months of 2023 from a net tightened stance on consumer credit and other lending.

The Central Bank added that banks reported a further softening in the demand for loans by households in the last two months of 2023, driven by declines in demand for loans for house purchases as well as consumer credit and other lending.

The December 2023 survey round pointed to a net decline in the overall demand for credit by enterprises relative to the previous survey period. The net decline in enterprise demand for credit reflected largely the sharp decline in demand for loans by large enterprises during the last two months of 2023.