Private sector credit in Ghana increased by 41.2% in June 2026. This marks a substantial rise from the 8.6% recorded during the same period last year. The growth indicates that improving financial conditions are leading to more lending for businesses.
Dr. Johnson Asiama, Governor of the Bank of Ghana (BoG), announced this development. He shared the information during a meeting with Chief Executive Officers and heads of banks. Real private sector credit growth also reached 34.1% in June 2026. The Governor noted that interest rates have continued to moderate across various market segments.
This credit expansion fits into Ghana's broader economic recovery. Real Gross Domestic Product (GDP) growth hit 6.4% in the first quarter of 2026. Headline inflation also decreased to 4.6% in July from 5.3% in June. The Monetary Policy Committee has kept the policy rate at 14%.
Dr. Asiama described the credit growth as a significant development. It occurs against a backdrop of declining inflation and stable financial conditions. He stated that the improving economic environment offers banks a chance to boost economic activity. This includes expanding access to finance for businesses.
Despite this strong rebound in credit creation, many small and medium-sized enterprises (SMEs) still face challenges. These businesses, especially those in the agricultural value chain, struggle to get financing. Banks often view these businesses as high risk, according to Dr. Asiama.
The Governor urged banks to better understand the sectors they serve. He called for innovative and flexible credit products. These products should reflect the realities of borrowers. He specifically mentioned loan repayment structures that consider the seasonal nature of agricultural activities. Repayment schedules should align with borrowers' cash flow timing.
Dr. Asiama emphasized that banks are more than financial intermediaries. They are crucial business partners in Ghana's economic growth and transformation. He believes banks should play a stronger role in supporting the economy.
The banking sector itself shows improved resilience. Total banking sector assets grew by 30.7% in June 2026. The industry's capital adequacy ratio increased to 20.4% from 10.6% a year earlier. The non-performing loan ratio also dropped to 16.1% in June 2026, down from 23.1% last year. These improvements provide a stronger foundation for banks to support businesses and households.
The Governor's comments highlight the Bank of Ghana's goal. It aims to ensure that macroeconomic stability translates into increased economic activity. This also includes broader access to finance across the country. The central bank is actively monitoring the evolving economic and geopolitical environment.