The increase represented GH¢32.96 billion in additional credit, significantly exceeding the 10 per cent growth recorded during the corresponding period of 2025, according to the Bank of Ghana’s September 2026 Monetary Policy Report.
The report attributed the expansion to increased credit to the private sector, alongside a turnaround in lending to the public sector.
Private sector borrowers continued to dominate bank lending, accounting for 96.1 per cent of total credit at the end of August, up from 95.5 per cent a year earlier. The development underscores the banking sector’s continued focus on financing private economic activity.
Credit to the public sector also rebounded, recording 16.1 per cent growth in August 2026, compared with a contraction of 26.9 per cent over the same period in 2025.
Despite the overall expansion in lending, the distribution of credit across economic sectors remained concentrated in services, commerce and finance, and construction.
The services sector retained its position as the largest recipient of industry credit, absorbing 37.7 per cent of total lending, an increase in its share compared with the corresponding period last year.
Commerce and finance followed, accounting for 22.4 per cent of total bank credit, while construction recorded a notable share of 11.3 per cent.
Together, the three sectors attracted 71.3 per cent of total industry lending by the end of August 2026.
Although the concentration remained substantial, it was slightly lower than the 73.5 per cent recorded a year earlier, suggesting a modest broadening of credit distribution across other sectors of the economy.
The strong growth in lending marks a significant acceleration in bank credit expansion in 2026, with private sector activity remaining the principal driver of credit demand.
The figures also point to renewed public sector borrowing from the banking system, reversing the contraction recorded in the previous year.
Source: businesspostonline
