Bank Credit to Private Sector and Public Institutions Falls Sharply to GHS 4.68bn in June 2025
Total credit extended by banks to the private sector and public institutions fell to GHS 4.68 billion in June 2025, down from GHS 11.35 billion in June 2024, according to the Bank of Ghana’s July 2025 Monetary Policy Report.
The contraction was largely attributed to a decline in credit flows to the public sector, as banks shifted investment preferences towards Government and Bank of Ghana securities.
Credit to the private sector dropped to GHS 6.69 billion in June 2025, compared with GHS 11.69 billion in the same period last year.
The central bank noted that private sector credit accounted for 95.05% of total outstanding credit flows in June 2025, up from 92.40% in June 2024.
By sectoral distribution, services dominated credit flows with 76.53%, followed by commerce and finance (17.65%), electricity, gas and water (6.52%), manufacturing (4.55%), and agriculture, forestry and fisheries (4.12%).
Outstanding credit to the private sector at the end of June 2025 stood at GHS 84.75 billion, up from GHS 78.06 billion a year earlier.
In real terms, however, private sector credit contracted by 4.48% compared to a 4.18% contraction in June 2024, underscoring a continued decline in real credit growth which slipped slightly below its trend during the review period.
