Net Credit Flows Decline to GHS 8.66bn in August 2025 on Lower Public Sector Lending
Total net credit flows within the banking sector declined sharply to GHS 8.66 billion in August 2025, from GHS 14.25 billion recorded in the same period last year, according to the Bank of Ghana’s September 2025 Monetary Policy Report.
The contraction, the report noted, was driven largely by a reduction in credit extended to the public sector, coupled with a moderation in private sector credit flows as banks shifted portfolio allocations toward Government and Bank of Ghana securities.
Private sector credit flows amounted to GHS 10.71 billion in August 2025, down from GHS 14.32 billion in August 2024. Despite the slowdown, the private sector continued to dominate credit allocation, accounting for 95.5 percent of total outstanding credit as of August 2025, compared to 92.7 percent a year earlier.
Sectoral distribution of private sector credit remained concentrated in services (68.2%), commerce and finance (23.8%), and manufacturing (23.0%).
Outstanding private sector credit stood at GHS 91.03 billion at end-August 2025, up from GHS 80.32 billion a year earlier. In real terms, private sector credit registered a modest growth of 1.7 percent, reversing the 1.1 percent contraction recorded over the corresponding period in 2024.
According to the Central Bank, the growth in real private sector credit was slightly above trend, with the deviation from trend widening marginally in August 2025 relative to the previous year, suggesting a cautious recovery in credit activity amid ongoing macroeconomic adjustments.
