Skip to main content

Credit growth slows significantly in 10-months of 2025, tumbles by 142% – BoG

 


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.

Labels:

Comments

Post a Comment

Popular posts from this blog

NESCAFÉ Launches Real Vibes Text & Win Promo to Reward Coffee Consumers Across Ghana

 NESCAFÉ has launched the Real Vibes Text & Win Promo, an exciting consumer promotion designed to reward loyal coffee lovers and bring the brand’s My Coffee, My Vibe experience even closer to consumers across the country. Running from September to December, the promotion gives consumers the opportunity to enjoy their favourite NESCAFÉ coffee while standing a chance to win exciting prizes, including phones, motorcycles, airtime and the ultimate grand prize—an electric SUV. Speaking at the launch, Lily Ntim, Category Development Manager for NESCAFÉ, said the promotion reflects NESCAFÉ’s commitment to creating, rewarding and memorable experiences for consumers. “Today, we are excited to introduce the NESCAFÉ Real Vibes Text & Win Promo, a campaign designed to bring the My Coffee, My Vibe experience even closer to our consumers,” she said. She added that the campaign is not only about prizes, but also about celebrating the everyday moments consumers enjoy with their coffee. “T...
Post a Comment
Read more

Ghana Home Loans

With interest rates declining, a more liquid environment and a macroeconomic stability, mortgage financing is expected to see an ease of credit. And Ghana Home Loans being a leader in this industry is expected to lead the way. Ghana Home Loans (GHL), a leader in home mortgage, continues to be the frontier in fulfilling dreams of many Ghanaians in homeownership. Since starting business in 2006, it has also provided many existing homeowners with Equity Release mortgages to support their businesses, pay educational fees, improve their properties, or simply pursue other personal hobbies and interests. Ghana Home Loans is a mortgage finance institution which operates under Bank of Ghana’s supervision as a non-bank financial institution. At present, the Company remains the only such institution that focuses exclusively on the provision of mortgage product. Through the Home Completion mortgage and Home Construction mortgage products, Ghana Home Loans has enabled many qualified applican...
16 comments
Read more

Tender Committee recommends E&P for Damang Mine lease transfer

  A Tender Committee has recommended the grant of the mining lease for the Damang Gold Mine to Engineers and Planners Limited, following a competitive evaluation process conducted by the Minerals Commission. The recommendation comes after a tender process initiated under Regulation 258 of the Minerals and Mining (Licensing Regulations), 2012 (LI 2176), aimed at selecting a strategic investor to take over the mining lease and operations of the Damang mine. According to the report, four companies responded to the public tender announced in the media. Out of these, two firms were shortlisted by the Mineral Titles Department of the Minerals Commission and subsequently submitted to the Tender Committee for detailed assessment. After what was described as a comprehensive evaluation, Engineers and Planners Limited emerged as the highest evaluated bidder, leading to the Committee’s recommendation for the award of the lease. Gold Fields Ghana Limited, which has operated in the country since...
Post a Comment
Read more