Banks urged to reduce interest rates

Commercial banks in the country have been urged to reduce their interest rates in order to win over the unbanked population.

Following the central bank’s decision to reduce the policy rate by 100 basis points, some banks are still reluctant to reduce their interest rates.

This, some analysts have argued, has contributed to the numerous non-performing loans witnessed in the country.

However, speaking at the official launch of Heritage Bank, East Legon branch, the Head of Banking Supervision of the Bank of Ghana, Raymond Amanfo, advised banks to minimise their interest rates so as to stay competitive in the banking industry.

“May I take this opportunity to urge all banks including Heritage Bank to consider the issue of high interest rates. We expect banks to respond favourably to the declining monetary rates and the Treasury Bill rates. This I believe will make credit more affordable, help boost productivity and at the same time have a favourable effect on the non-performing loan structure of banks,” he stated.