Ghana’s banking industry ended 2024 on a mixed note, recording solid asset growth but limited private sector lending, the World Bank has revealed in its 9th Economic Update on Ghana.
The June 2025 World Bank Ghana report highlighted that banks accumulated significant liquidity, yet much of it was channeled into low-risk government securities rather than loans to businesses and households. Elevated non-performing loan (NPL) ratios continued to weigh heavily on risk appetite.
“While banks successfully grew their asset bases in 2024, this expansion did not translate into proportional credit to businesses and individuals,” the World Bank noted, describing the trend as a sign of caution in a high-risk lending environment.
However, momentum appears to be shifting in 2025. The report pointed to a rebound in the first quarter, where lending to the private sector picked up on the back of renewed investor confidence and stronger macroeconomic indicators.
“In the first quarter of 2025, private credit rebounded, driven by renewed investor confidence and improved macroeconomic conditions,” the Bank stated.
Analysts say the turnaround reflects the impact of the government’s fiscal consolidation efforts and the Bank of Ghana’s tight monetary policy, which are gradually restoring confidence in the financial system.
The World Bank cautioned, however, that sustaining this progress will require continued reforms to reduce systemic risks and incentivise banks to channel funds into productive sectors. Expanding private credit, it stressed, remains critical for stimulating business growth, job creation, and long-term economic recovery.
