Dr. Asiama is BoG Governor<\/p>\n
Credit conditions in the banking sector remained subdued in October 2025, reflecting banks\u2019 cautious risk-taking stance and a continued preference for Government and Bank of Ghana securities.<\/p>\n
According to the Banking Sector Development report by the Bank of Ghana, total net credit flows slowed to GH\u00a28.626 billion, a 142% reduction year-on-year as of the end pf October 2025.<\/p>\n
This is compared with GH\u00a220.952.3 billion in October 2024.<\/p>\n
According to the report, this sharp decline was a result of a marked reduction in lending to the public sector, alongside softer credit expansion to the private economy.<\/p>\n
Public Sector Credit<\/p>\n
The credit to the public sector contracted significantly during the period.<\/p>\n
The public sector credit declined by GH\u00a23.445 billion (-45.2%) in the year to October 2025, in contrast with the GH\u00a21.516 billion (24.8 percent) expansion recorded a year earlier.<\/p>\n
This decline reflected the ongoing fiscal consolidation which had resulted in reduced government borrowing from the banking system.<\/p>\n
Notwithstanding a moderation in growth in credit to the private sector, the private sector remained the primary recipient of new lending.<\/p>\n
Private Sector Credit<\/p>\n
The private sector credit expanded by GH\u00a212.072 billion (13.9%) in the year to October 2025, although this reflected a moderation from the GH\u00a219.435 billion (28.8%) growth recorded a year earlier.<\/p>\n
The private sector\u2019s share of total outstanding credit remained dominant, rising to 95.9% up from 91.9% in October 2024.<\/p>\n
Nominal private sector credit stood at GH\u00a298.918 billion at end-October 2025, compared with GH\u00a286.846 billion recorded in October 2024.<\/p>\n
Sector Breakdown<\/p>\n
A sectoral breakdown of private-sector credit flows showed differentiated lending patterns.<\/p>\n
The services sector remained the largest destination of new credit, contributing 77.7% of annual credit flows in October 2025, significantly higher than the share of 24.5% recorded at the same time last year. The manufacturing sector accounted for 18.8% in October 2025, compared with 10.6% a year earlier. Similarly, the mining and quarrying sector recorded a substantial increase, absorbing 11.9% of annual private sector credit flows compared to 2.5% in 2024.<\/p>\n
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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.<\/p>\n","protected":false},"excerpt":{"rendered":"Dr. Asiama is BoG Governor Credit conditions in the banking sector remained subdued in October 2025, reflecting banks\u2019…\n","protected":false},"author":2,"featured_media":22519,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28],"tags":[79],"class_list":{"0":"post-22518","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ghana","8":"tag-ghana"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/posts\/22518","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/comments?post=22518"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/posts\/22518\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/media\/22519"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/media?parent=22518"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/categories?post=22518"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/tags?post=22518"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}