Ghana’s Local Banks Gain Ground as Secured Lending Reaches GH₵31.5 Billion

Ghana’s secured-credit market expanded sharply in the second quarter of 2026, but its headline growth conceals a changing contest between locally owned and foreign-owned banks. The value of secured credit advanced and registered across lenders reached GH₵31.5 billion, up 73.4% from GH₵18.2 billion a year earlier, according to Bank of Ghana Collateral Registry figures reported by Ghana News Agency. That is an important signal of activity in credit backed by pledged assets. It is not, on its own, proof that financing has become affordable or broadly available to smaller firms.

Banks accounted for GH₵19.9 billion, or 63.1% of the registered secured-credit value in the quarter. Within that banking total, foreign-owned institutions registered GH₵14.1 billion, a 71.1% share. Ghanaian-owned banks registered GH₵5.7 billion, or 28.9%. The two reported bank categories do not sum precisely to the rounded sector total, which is normal when figures are presented to one decimal place. Their relative performance is more revealing than the rounding gap.

Local lenders grew faster from a smaller base

The foreign-owned bank total rose 19.3% from GH₵11.8 billion in the second quarter of 2025, GNA reported. Ghanaian-owned banks, meanwhile, increased their registered secured credit by 112.4% from GH₵2.7 billion. In absolute terms, the foreign-owned institutions still handled much more of the banking sector’s secured credit. In growth-rate terms, local banks expanded considerably faster. Both facts belong in the same account; neither cancels the other.

The quarter-on-quarter comparison points in the same direction of continued activity rather than a single year-on-year leap. Foreign-owned banks registered GH₵14.1 billion in Q2 after GH₵11.6 billion in Q1, while Ghanaian-owned banks rose to GH₵5.7 billion from GH₵4.8 billion. These figures describe the value of secured credit recorded in the registry, not each group’s profits, the number of new customers or the quality of its loan book. A bank can register a large facility to a small number of clients; a smaller total could involve many businesses. The release does not resolve that distinction.

Nor does foreign ownership automatically mean credit leaves Ghana’s economy. The relevant question for borrowers is whether institutions operating in Ghana finance productive local activity on workable terms. Likewise, rapid growth at Ghanaian-owned banks is encouraging only if underwriting remains sound and the financing reaches firms with viable projects. Ownership is a useful way to understand competition, but it should not become a substitute for examining who receives credit and at what cost.

Why the collateral registry matters

Secured lending uses an asset or other property interest to support a loan. The Bank of Ghana says its Collateral Registry records security interests created when borrowers pledge movable or immovable assets. A lender can search the system to assess claims over an asset, while registration gives notice to other parties of an existing interest. The process can make credit decisions more transparent and reduce uncertainty about competing claims. It does not transfer ownership of a pledged asset merely because a security interest is registered.

That infrastructure is especially relevant to businesses whose usable assets are not limited to land and buildings. Vehicles, equipment or inventory may support financing when lenders can identify and assess the collateral reliably. The central bank has described the registry as part of a broader effort to make secured transactions more transparent. For a small manufacturer or trader, however, a searchable asset record is only one step. The lender still has to judge cash flow, repayment capacity and the costs of administering a loan.

The latest data show more use of the registry’s search function: searches rose 13.9% year on year to 19,518, according to the figures cited by GNA. That may indicate stronger due diligence and greater use of the system, but searches are not equivalent to approved loans. One lender could conduct several checks before reaching a decision, and some searches may not lead to credit. Treating search volume as a measure of access would overstate what the indicator can show.

What the growth does not settle

A 73.4% rise in registered value is striking, yet nominal cedi growth does not tell the reader how much credit expanded after changes in prices or the mix of large and small transactions. The aggregate also combines banks with other lenders. Analysts need more detail on loan counts, borrower size, sector, geography, maturity and pricing to know whether the change is broad-based. Without that breakdown, it is possible to say the recorded market is larger; it is not possible to say that a typical small business found it easier to borrow.

There is a second distinction between availability and sustainability. A lender can increase the value of secured loans while exposing itself to repayment problems if borrowers’ incomes do not support the debt. Conversely, excessively strict collateral demands can exclude sound businesses. The best measure of progress is credit that finances productive activity at terms the borrower can service, with risks understood by both sides. That calls for strong information, disciplined lending and fair processes when a borrower falls behind.

For local banks, the next test is whether their faster growth can be maintained without weakening portfolio quality. They may be closer to some domestic businesses and better placed to understand local markets, but that advantage depends on capital, risk management and operational capacity. Foreign-owned banks’ larger share could reflect scale, client mix or other factors; the published totals alone do not establish why the gap persists. Policy should be informed by evidence on those mechanisms rather than by ownership labels alone.

The next useful disclosure

Ghana would benefit from regular, comparable reporting that connects registry totals with the real economy. Sector and regional breakdowns could show whether manufacturing, agriculture and smaller enterprises are participating. Loan-size distributions could reveal whether a surge in value is driven by a handful of large transactions. Information on maturities and borrowing costs would help readers understand whether firms can finance long-lived equipment rather than only short-term needs.

The second-quarter figures show a more active secured-credit market and a notable acceleration among Ghanaian-owned banks. They also show that foreign-owned institutions remain the dominant banking participants by value. The public-interest question is not which ownership category wins a quarterly league table. It is whether a stronger collateral system and growing competition lead to sound, accessible finance for the businesses and households that need it.