Credit conditions in the banking sector remained subdued in October 2025, reflecting banks’ cautious risk-taking stance and a continued preference for Government and Bank of Ghana securities.

According to the Banking Sector Development report by the Bank of Ghana, total net credit flows slowed to GH¢8.626 billion, a 142% reduction year-on-year as of the end pf October 2025.

This is compared with GH¢20.952.3 billion in October 2024.

According to the report, this sharp 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

The credit to the public sector contracted significantly during the period.

The public sector credit declined by GH¢3.445 billion (-45.2%) in the year to October 2025, in contrast with the GH¢1.516 billion (24.8 percent) expansion recorded a year earlier.

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

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

Private Sector Credit

The private sector credit expanded by GH¢12.072 billion (13.9%) in the year to October 2025, although this reflected a moderation from the GH¢19.435 billion (28.8%) growth recorded a year earlier.

The private sector’s share of total outstanding credit remained dominant, rising to 95.9% up from 91.9% in October 2024.

Nominal private sector credit stood at GH¢98.918 billion at end-October 2025, compared with GH¢86.846 billion recorded in October 2024.

Sector Breakdown

A sectoral breakdown of private-sector credit flows showed differentiated lending patterns.

The services sector remained the largest destination of new credit, contributing 77.7% of annual credit flows in October 2025, significantly higher than the share of 24.5% recorded at the same time last year. The manufacturing sector accounted for 18.8% in October 2025, compared with 10.6% a year earlier. Similarly, the mining and quarrying sector recorded a substantial increase, absorbing 11.9% of annual private sector credit flows compared to 2.5% in 2024.