Banks are doubling down on short-term government securities, even as yields on these instruments trend downward.
New data from the Bank of Ghana shows that Treasury bills and central bank bills made up 65.0 percent of banks’ investment portfolios as of February 2026, a significant jump from 44.5 percent recorded a year earlier.
The figures suggest that banks continue to favour short-term instruments for their liquidity and flexibility, despite the sharp decline in interest rates in recent months.
Meanwhile, holdings of long-term securities dropped considerably, with their share falling to 34.5 percent from 55.1 percent over the same period. This reflects a shift away from longer-duration assets, which have seen slower growth and carry higher uncertainty.
Equity investments remained marginal, accounting for just 0.4 percent of total portfolios, up slightly from 0.3 percent in February 2025.
Overall investment levels, however, expanded strongly. Total investments rose by 57.5 percent year-on-year to GH¢192.8 billion in February 2026, driven largely by a surge in short-term placements. These grew by 130.1 percent compared to minimal growth of 1.6 percent in the previous year.
In contrast, long-term investments contracted by 1.4 percent, reversing the 14.7 percent growth recorded in 2025.
The trend underscores a broader strategy among banks to prioritise liquidity and manage risk by focusing on short-term instruments, even in a declining interest rate environment.
Source: businesspostonline
