Today in History: Addressing High Commercial Bank Lending Rates

President of Ghana, Nana Addo Dankwa Akufo-Addo

On August 22, 2021, President Nana Addo Dankwa Akufo-Addo pleaded with the central bank to address the country’s high commercial bank lending rates.

Closing the gap between the BoG’s policy rate and commercial bank lending rates, President Akufo-Addo said, will bolster the rapid growth of the local economy.

“Interrogating the issue of high interest rates in Ghana, and how the problem should be addressed to improve the competitiveness of the private sector in the country…I believe the Bank of Ghana is best placed to lead this thought process and action,” said President Akufo-Addo.

Read the full story originally published August 22, 2021 by GNA.

President Nana Addo Dankwa Akufo-Addo has urged the Bank of Ghana (BoG) to close the gap between its policy rate and commercial bank lending rates to foster the country’s rapid growth.

He said it was not fair that the central bank’s policy rate was 13.5% while commercial banks were lending to the private sector at 21% or more, adding that this stifled the competitiveness of the sector, which was the engine of economic growth.

“Interrogating the issue of high interest rates in Ghana, and how the problem should be addressed to improve the competitiveness of the private sector in the country…I believe the Bank of Ghana is best placed to lead this thought process and ‘stock.

“It is a gap that we must bridge if we are to achieve the vision of a Ghana with a globally competitive economy,” he said when he was sworn in to the new board of directors. administration of 13 members of the Central Bank at Jubilee House, Accra. , Friday.

The council, chaired by BoG Governor Dr Ernest Addison, includes Dr Maxwell Opoku-Afari, First Deputy Governor, Miss Elsie Addo Awadzi, Second Deputy Governor, Charles Kofi Adu Boahen, Minister of State, Ministry of Finance, and Pr Eric Osei Asibey.

The others are Dr. Kwame Owusu-Nyantekyi, Dr. Samuel Nii-Noi Ashong, Mr. Jude Kofi Bucknor, Mr. Joseph Blignam Alhassan, Mr. Andrew Adinorte Boye-Doe, Ms. Angela Kyerematen-Jimoh, Ms. Comfort Ocran and Ms. Regina Ohene-Darko Adutwum.

The President told the Board that the Central Bank had distinguished itself over the past four years and had discharged its duties impeccably, proved to be a good banker to the government and a safe guardian nation’s money.

He was encouraged by the many corporate governance measures that have been put in place by the BoG to mitigate future bank failures and “ensure that we have a strong banking sector that can drive the government’s transformation agenda.” .

President Akufo-Addo also hailed the recent policy measures introduced by the BoG, saying that they are in line with the overall objective of moving Ghana to a state beyond aid.

He noted that the BoG’s recently introduced domestic gold buying initiative is a game-changer that will help transform the country’s domestic gold production value chain, and “will enable us to add value to our gold and to establish transparency in the small-scale gold mining industry. in Ghana.

The President praised the central bank’s leading role in digitizing the economy and said the recent announcement of the central bank-backed pilot digital currency, the ECD, which would completely transform the architecture of Ghana’s payment systems, enhance financial inclusion and improve access to credit for small and medium enterprises.

He also commended the bank for its initiative and partnership with the Singapore supervisory authorities and Ghana’s Ministry of Finance to develop a network of digital platforms to serve as global public infrastructure to drive SME growth in both countries. .

“All of these have re-established the Bank of Ghana as an institution of excellence, reflecting the international recognition of the bank,” he said.

The President instructed the Board of Directors to draw on the vast experience of the members to ensure the formulation of the policies necessary to achieve the Bank’s objectives.

“I rely on the Board of Directors with its diverse experience, talents and skills to support the bank’s agenda and help formulate the policies necessary to achieve its objectives. It’s a charge I’m sure you’ll keep,” he said.

In his remarks, Dr Addison promised that the board would pursue prudent policies to consolidate the gains made over the past four years.

“Given the rich and diverse background of the Board, there is no doubt in my mind that together we can build on the solid foundations that were laid by our predecessors and take this institution to new heights. even higher peaks,” he said.

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