Credit conditions in the banking sector improved in April 2026 relative to the previous year, supported by improved macroeconomic conditions.

According to the May 2026 Monetary Policy Report, the banking sector credit continued to expand, with lending activity increasingly concentrated in the private sector.

Total credit flows increased by GH¢23.708 billion (25.9%) as at the end of April 2026, compared with GH¢13.595 billion (17.4%) in April 2025.

The stronger outturn was driven largely by increased lending to the private sector, particularly the services, mining and quarrying, construction and commerce, and finance sectors, while credit to the public sector contracted over the review period.

Public Sector Credit

Meanwhile, credit to the public sector continued to decline, contracting by GH¢1.015 billion (-18.9%) in April 2026, compared with a contraction of GH¢711.03 million (-11.7%) in April 2025.

The continued decline reflected reduced reliance on banking sector financing amid ongoing fiscal consolidation efforts.

Private Sector Credit

Private sector credit increased by GH¢24.723 billion (28.7%) in April 2026, compared with GH¢14.306 billion (19.9%) in April 2025.

Consequently, the stock of nominal private sector credit rose to GH¢110.885 billion at end-April 2026 from GH¢86.161illion in the previous period. The private sector’s share of total outstanding credit increased to 96.2 percent in April 2026 from 94.1% in April 2025, underscoring the banking sector’s growing support of productive economic activity.

Sectoral Analysis

A sectoral analysis of private sector credit indicated that the services sector continued to receive the largest proportion of annual private credit flows.

The share of private sector credit flows attributed to the services sector, however, moderated to 34.7% in April 2026 from 35.6% in April 2025.

The share of the credit flows to the commerce and finance sector also moderated to 15.5% from 16.9% over same comparative period.

All other sectors recorded a decrease in the percentage share of credit flows with the exception of the mining and quarrying sector which recorded an increased share of 6.3% in April 2026 compared to 2.9% in April 2025.