Business News of Monday, 1 November 2021
Source: www.ghanaweb.com
• Lending to private sector is key to spurring economic growth
• The cost of credit has been high
• Ghana’ banking sector has remained strong in 2021
Second Deputy Governor of the Bank of Ghana, Elsie Addo Awadzi, has tasked banks to significantly increase their credit base to lend to the private sector.
According to her, banks must ensure they are offering affordable interest rates to their customers.
Speaking at the 25th gala dinner of the First National Bank, the second deputy governor said, “We [Bank of Ghana] remain concerned about the relatively high lending rates that banks continue to charge their customers, with spreads over and above the Ghana Reference Rate and very high fees, commissions and other costs imposed on customers which lead to the exclusion of many small and medium-sized businesses out of the credit market and by extension, impedes their survival and growth.”
“As a nation, we lose significant opportunities to grow strong viable brands that can compete with businesses across the African market and beyond if we do not provide mechanisms for financing our small businesses on a consistent and sustainable basis,” she added.
Elsie Addo Awadzi reiterated that Ghana’s banking sector in 2021 to date has remained strong with sustained growth in total assets, deposits, loans, investments, and income, although credit risk remains a concern.
The Central Bank however said it continues to monitor closely as the pandemic rages on.
“We expect banks to continue in their efforts to support a strong recovery of the Ghanaian economy,” she added.