Ghana’s Banking Sector Sees Asset Growth but Limited Private Credit in 2024 – World Bank
Ghana’s banking sector recorded mixed fortunes in 2024, marked by strong asset growth but constrained credit expansion to the private sector, according to the World Bank Group’s 9th Ghana Economic Update.
The June 2025 edition of the report noted that heightened liquidity supported significant asset accumulation across the banking industry last year. However, banks remained cautious in extending credit to businesses and individuals due to elevated risks in the lending environment.
“While banks successfully grew their asset bases in 2024, this expansion did not translate into proportional credit to businesses and individuals,” the World Bank observed.
The report attributed the cautious lending stance partly to high non-performing loan (NPL) ratios, which reinforced banks’ preference for holding liquid assets or investing in low-risk government securities over private sector credit.
Despite these challenges, the World Bank highlighted a positive turnaround in the first quarter of 2025.
“In the first quarter of 2025, private credit rebounded, driven by renewed investor confidence and improved macroeconomic conditions,” the report stated, adding that government fiscal consolidation measures and the Bank of Ghana’s tight monetary policy had begun to restore confidence.
Analysts say the rebound in private sector credit is a key indicator of Ghana’s gradual economic recovery, as increased lending is critical to business expansion, job creation, and sustained growth.
To consolidate these gains, the World Bank has urged government to deepen ongoing reforms to reduce systemic risks and create an enabling environment that incentivises banks to channel more funds into productive sectors.
