It increased by 31.8 per cent in December 2022, as against 11.2 per cent in December 2021.

In real terms, however, private sector credit contracted sharply by 14.5 per cent, compared with 1.3 per cent contraction over the review period, reflecting sustained price pressures.

According to the Monetary Policy Committee of the Bank of Ghana (BoG) report released in Accra on Monday (January 30), developments in the banking sector were broadly reflective of current macroeconomic conditions, with rising cost of credit due to inflationary pressures, and revaluation-driven balance sheet performance.

As a result, the performance of the sector moderated in December 2022 compared with December 2021, with some key Financial Soundness Indicators (FSIs) recording significant declines.