Secured lending rises 73% to GH¢31.5 billion

The value of secured credit registered in Ghana increased by 73.4 percent to GH¢31.5 billion in the second quarter of 2026, driven by stronger bank lending and a sharp rise in credit directed to the construction sector.

The latest Collateral Registry Quarterly Brief from the Bank of Ghana shows registered secured credit rising from GH¢18.2 billion in the corresponding quarter of 2025. On a quarterly basis, the value increased by 57.5 percent from GH¢20 billion recorded in the first quarter of 2026.

Banks remained the leading source of secured credit, providing GH¢19.9 billion, equivalent to 63.1 percent of the total registered during the quarter. Bank lending secured with collateral grew by 36.6 percent from GH¢14.5 billion in the same period last year.

Other lenders accounted for GH¢8.3 billion, representing 26.3 percent of total secured credit. Rural and community banks provided GH¢1.7billion, while savings and loans companies recorded GH¢1.25 billion.

The expansion in value occurred despite a substantial decline in the number of security-interest registrations, indicating that fewer but considerably larger credit facilities were registered during the quarter.

Total registrations fell by 32.2 percent from 135,721 in the second quarter of 2025 to 92,033 in the review period. Registrations also declined by 4.5 percent from the 96,343 recorded in the first quarter.

The year-on-year reduction was mainly attributed to savings and loans companies, whose registrations dropped from 119,649 to 68,871. Their share remained dominant by volume at 74.8 percent, although their value of registered credit declined by 37.7 percent to GH¢1.25billion.

Construction emerged as the largest recipient sector, taking GH¢9.9billion, or 31.4 percent of the total secured credit registered in the quarter. The amount represented a 900.1 percent increase from GH¢989.2 million in the second quarter of 2025.

Compared with the first quarter of 2026, secured lending to construction increased by 147.3 percent from GH¢4billion. The sharp expansion placed the sector ahead of commerce and finance, which had traditionally accounted for a significant portion of registered credit.

Commerce and finance received GH¢8.1billion, representing 25.7 percent of the total and a year-on-year increase of 25.9 percent. Credit to the services sector more than doubled from GH¢1.7 billion to GH¢4.4 billion, while mining and quarrying attracted GH¢3.34 billion.

Manufacturing received GH¢1.41billion, up 22.6 percent from GH¢1.15 billion a year earlier. Agriculture, forestry and fishing recorded GH¢784.9 million, representing only 2.5 percent of total secured credit despite a 37.3 percent year-on-year increase.

Electricity, gas and water recorded one of the sharpest contractions, with secured credit falling by 62.4 percent from GH¢3 billion to GH¢1.13 billion. Information and communications also declined by 34 percent to GH¢90.3 million.

Large private enterprises remained the principal beneficiaries, receiving GH¢13.8 billion, equivalent to 43.9 percent of total registered credit. The amount increased by 18.3 percent from GH¢11.6billion in the second quarter of 2025.

Secured credit to small and medium-sized enterprises increased by 28.9 percent year-on-year to GH¢3.85 billion. It, however, fell by 48.2 percent from GH¢7.43 billion in the first quarter, pointing to a sharp quarterly slowdown in collateral-backed financing for SMEs.

Individuals received GH¢3.28 billion, while micro businesses accounted for GH¢290.8 million. Borrowers classified under the Registry’s “other” category received GH¢10.1billion.

Foreign-controlled banks continued to dominate bank-financed secured credit. They registered GH¢14.1 billion, representing 71.1 percent of the GH¢19.9 billion attributed to banks.

Ghanaian-owned banks accounted for GH¢5.74 billion, or 28.9 percent. Their lending grew much faster, more than doubling from GH¢2.7 billion in the corresponding quarter of 2025. Credit registered by foreign-controlled banks increased by 19.3 percent from GH¢11.84billion.

The figures also reveal a wide gender gap in the value of secured financing. Male borrowers and male-owned businesses received GH¢19.4 billion, compared with GH¢3.1 billion advanced to female borrowers and female-owned businesses.

Female participation was considerably stronger by volume. Female borrowers and female-owned businesses accounted for 75,465, or 82.8 percent, of the 91,098 secured-credit facilities covered by the gender classification. This suggests women obtained a large number of facilities with relatively smaller average values.

Greater Accra dominated the regional distribution by value, accounting for GH¢24.5 billion, or 77.8 percent of total secured credit. Ashanti followed with GH¢3.4 billion, representing 10.8 percent.

Ashanti region recorded the highest number of security-interest registrations at 27,627, compared with Greater Accra’s 21,736. The difference reinforces the concentration of higher-value secured transactions in the capital.

Movable assets remained central to collateral-backed financing, accounting for 79.1 percent of the 117,428 assets registered. Cash collateral constituted 68.7 percent of all pledged assets, followed by inventories and stocks of goods at 8.5 percent and company or business assets at 7.9 percent.

The number of searches conducted on the Collateral Registry Application System increased by 13.9 percent to 19,518, signaling stronger use of the platform by lenders conducting checks on assets offered as collateral.

Discharges of registered security interests also rose from 14,183 to 107,836. The Bank of Ghana attributed the increase to improved settlement of secured obligations and intensified education on the requirement for lenders to remove security interests after borrowers have satisfied their obligations.