Ghanaian banks increased lending by 34.6% in the year to August 2026 as declining Treasury bill yields coincided with stronger demand for private-sector credit. At the same time, growth in banks’ investment portfolios slowed sharply, signalling a shift in the composition of their assets.
Gross loans and advances rose to GH¢128.3 billion, equivalent to approximately $11 billion, at the end of August 2026. This compared with annual lending growth of 10% recorded a year earlier.
In contrast, growth in banks’ investment portfolios slowed to 4.7% from 56.2%. The slowdown came amid falling domestic money-market yields and portfolio adjustments following the Bank of Ghana’s introduction of a uniform 20% cash reserve requirement in June.
Returns on short-term government securities also declined significantly. The yield on 91-day Treasury bills fell to 5.4% from 10.3% a year earlier, while the average bank lending rate dropped to 15.9% from 24.2%.
Private businesses accounted for the largest share of bank credit, representing 96.1% of outstanding loans, up from 95.5% in August 2025. Real private-sector credit growth accelerated to 29%, compared with 1.7% a year earlier.
However, lending remained concentrated in a few sectors. Services accounted for 37.7% of banks’ loan portfolios, followed by commerce and finance at 22.4%, while construction represented 11.3%.
Together, the three sectors accounted for 71.3% of total bank credit, down from 73.5% a year earlier. This indicates that although lending remained concentrated, the combined share of these sectors declined over the period.
The banking industry’s non-performing loan ratio also improved, falling to 15.7% from 20.8%. Despite the decline, the Bank of Ghana maintained that credit risk remained elevated.
The figures show a sharp expansion in bank lending alongside weaker returns from Treasury bills. However, the continued concentration of credit in a few sectors and the elevated level of non-performing loans remain important considerations for Ghana’s banking industry.