By Adnan Adams Mohammed
The latest Monetary Policy Report from the Bank of Ghana (BoG) paints a stark picture of a shifting financial landscape.
For years, the public sector was the primary engine of credit consumption, but 2025 marked a definitive pivot. Under the stewardship of Governor Dr. Johnson Asiama, the central bank, has revealed that credit to the public sector contracted by a staggering 25.5%, falling to GH¢4.8 billion by the end of December 2025.
This isn’t just a data point; it is a signal of a significant slowdown in government activities and a radical restructuring of how Ghanaian banks manage their risks.
A retreat from public lending
The contraction in public sector credit suggests a government that is either tightening its belt or is being crowded out. While the private sector (households and enterprises) saw a nominal growth of 19.2% to reach GH¢106.2 billion, the “real term” reality is less optimistic. When adjusted for economic pressures, private sector credit actually slumped compared to 2024.
Total gross loans and advances across the industry grew by only 16.2% in 2025, a noticeable dip from the 24.1% growth seen the previous year.
The T-Bill fortress
If banks aren’t lending as aggressively to the public or private sectors, where is the money going? The answer lies in the safety of government paper.
In a dramatic shift of investment strategy, Treasury bills now constitute the lion’s share of bank portfolios. Their share jumped from 40.3% in 2024 to a dominant 62.3% in 2025. Meanwhile, long-term securities often the bedrock of sustainable development funding plummeted from 59.3% to 37.2%.
This “flight to T-bills” reflects a banking sector that is prioritizing liquidity and short-term security over long-term risk.
Who is getting the cash?
Despite the overall tightening, the distribution of available credit remains heavily concentrated in a few specific pillars of the economy. Three sectors now command 72.1% of all credit:
Sector Dec 2025 Share (%) Dec 2024 Share (%)
Services 37.1% 31.7%
Commerce & Finance 24.3% 27.0%
Manufacturing 10.7% 10.5%
The Services sector has emerged as the clear winner, seeing a nearly 6% increase in its share of the pie. Conversely, vital infrastructure sectors like Electricity, Water, and Gas saw their share dwindle to a mere 3.0%, raising questions about the future of utility expansion and reliability.
The funding crunch
The report also highlights a subtle shift in how banks are funded. Deposit growth has slowed, with the share of deposits in total liabilities falling to 72.8%. To compensate, banks have increased their borrowings and leaned more heavily on shareholders’ funds, which improved to 13.1% of total funding.
“The growth moderation recorded during the reference period is a reflection of a broader economic recalibration,” the BoG report suggests.
The bottom line
Ghana’s financial sector in 2026 is waking up to a “new normal.” The government is taking less credit, banks are playing it safe with T-bills, and the Services sector is the anchor. For the average entrepreneur in manufacturing or utilities, however, the message is clear: the credit tap is significantly tighter than it was a year ago.
As Ghana moves further into 2026, the challenge for Dr. Asiama and the BoG will be to ensure that this “moderation” doesn’t turn into a stagnation that stifles the very growth the country needs.
