The data released last week by the Bank of Ghana indicate that some commercial banks are still charging extremely high loan rates. The Central bank introduced the loaning rate reduction at the end of March in its monetary standard policy Rate.
The current GRR is at 13.51%, operative since 4th August 2021, which is almost equal to the MRR of 13.50% over the past five months. The data shows that out of 33 banks, 17 are operating according to the Ghana lending average, giving them a minimum interest of 5%.
Certainly, most banking industry analysts oppose that the level of risk a bank is usually ready to take on its loan book shows the average interest rates it charges. A high average lending rate results in more risk, and low lending rates equate to low risk.
The Bank of Ghana indicates that Commercial Banks are still charging high-Interest rates.
