The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has urged banks to sustain the expansion of credit to the private sector as improved macroeconomic conditions continue to ease financial conditions.
This comes as private-sector credit grew by 41.2% in June 2026, compared with 8.6% a year earlier, while real private-sector credit growth stood at 34.1%.
Speaking at a meeting with Heads of Commercial Banks at the Bank Square on Wednesday, August 12, 2026, Dr. Asiama said the strong growth in lending signals that lower interest rates and improving economic conditions are beginning to translate into increased financing for businesses.
“In the money markets, interest rates have continued to moderate across various market segments. These developments are beginning to translate into stronger credit flows to the private sector. Indeed, private sector credit grew by 41.2% in June 2026, compared with 8.6% a year earlier, while real private sector credit growth stood at 34.1%. This is a significant development indeed,” he said.
Banking sector resilience improves
The call for increased lending comes against the backdrop of significant improvements in the banking sector.
Total banking-sector assets increased by 30.7% in June 2026, supported mainly by growth in deposits and shareholders’ funds. The industry’s Capital Adequacy Ratio also rose sharply to 20.4%, compared with 10.6% a year earlier, indicating stronger capital buffers across the sector.
Asset quality has also improved, with the non-performing loan ratio declining to 16.1% in June 2026, from 23.1% in June 2025.
Dr. Asiama said the improvements demonstrate the strengthening resilience of Ghana’s banking sector and provide a stronger foundation for supporting economic activity.
Inflation, growth improve
The Governor also highlighted the broader improvement in Ghana’s macroeconomic environment.
Real GDP growth reached 6.4% in the first quarter of 2026, compared with 6.2% during the same period in 2025, driven largely by the services and industry sectors.
Meanwhile, headline inflation fell further to 4.6% in July 2026, from 5.3% in June, supported by slower food inflation and relative stability in the exchange rate.
Despite the improvement, the Monetary Policy Committee maintained the policy rate at 14%, with the Governor citing uncertainty surrounding global developments, including geopolitical tensions and volatility in energy markets.
