Ghana’s Bank lending rate falls from 24.2% to 15.9% in one year – BoG Governor

The average lending rate in Ghana’s banking sector has dropped sharply to 15.9%, from 24.2% a year earlier, as easing financial conditions and recovering credit demand support stronger lending activity.

Governor of the Bank of Ghana (BoG), Dr. Johnson Pandit Asiama, disclosed this at a post-Monetary Policy Committee (MPC) engagement with heads of banks in Accra on Tuesday, October 6, 2026.

He said the easing of financial conditions was improving the transmission of monetary policy across key segments of the economy, particularly the credit market.

“The easing of domestic financial conditions has continued to support the transmission of monetary policy to various market segments including the credit market,” Dr. Asiama said.

According to the Governor, the average lending rate stood at 15.9% in August 2026, compared with 24.2% in August 2025.

The decline in lending rates has occurred alongside an easing in banks’ credit stance and a recovery in demand for credit, developments which have contributed to a significant expansion in private-sector lending.

Private-sector credit grew by 35.5% in August 2026, up from 13.3% recorded during the same period in 2025.

In real terms, credit growth increased to 29.0%, compared with just 1.7% a year earlier.

Dr. Asiama said the developments were occurring alongside broader improvements in the banking sector, with total banking-sector assets increasing on the back of strong deposit mobilisation and growth in other funding sources.

“I am particularly encouraged by the continued resilience of the banking sector,” he said.

He added that the sector remained well capitalised, while asset quality had also improved.

“These are positive developments and reflect the strengthening of the sector as well as the collective efforts of banks to improve their balance sheets and support economic activity,” the Governor said.

The stronger growth in private-sector credit comes as the central bank continues to monitor risks associated with rapid lending expansion.

Dr. Asiama said the non-performing loan ratio had declined significantly but remained elevated relative to regulatory thresholds.

“Banks are therefore expected to continue strengthening credit risk management, while ensuring full compliance with the NPL guidelines,” he said.

He cautioned that the rapid expansion in private-sector credit must be supported by strong lending and risk-management practices.

“At the same time, as private sector credit expands rapidly, this growth must be supported by sound underwriting standards and effective risk-management frameworks,” he said.

The Governor further disclosed that the BoG would soon issue a Credit Risk Management Directive to complement the NPL Notice issued last year.

He said the directive would strengthen banks’ approach to credit origination, administration, monitoring, measurement and recovery.

“We expect this to further strengthen asset quality and ensure that credit expansion is sustainable,” Dr Asiama said.

The decline in lending rates comes amid an easing of domestic financial conditions and stronger economic activity.

Ghana’s real GDP grew by 6.0% in the second quarter of 2026, driven mainly by the services and industry sectors. Consumer and business confidence also remained positive during the period.

The BoG’s Monetary Policy Committee maintained the Monetary Policy Rate at 14% at its September meeting, saying the balance of risks to inflation and growth was broadly balanced.

Headline inflation stood at 5.0% in August, up from 4.6% in July, but remained below the lower bound of the medium-term target band of 8 ± 2%.