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Ghana banking sector sees new loan rates drop to 9%-12%
John Awuah, CEO of the Ghana Association of Banks (GAB), reports that new commercial loans in Ghana are now attracting interest rates between 9% and 12%. This decline in borrowing costs occurs despite the Bank of Ghana maintaining its monetary policy rate at 14% since March.
Auhuah noted that while the average commercial lending rate stands at 15.9%, this figure includes legacy exposures priced under previous financial conditions. The reduction in rates, alongside a 29% year-on-year growth in real-term private sector credit, suggests that banks are responding to improved monetary conditions.
However, the GAB chief also highlighted challenges regarding non-performing loans (NPLs). He emphasized that banks require more effective court recovery processes to manage bad loans and prevent capital from being tied up in distressed assets, which limits the ability to extend new credit to the economy.
Entities
Bank of Ghana · Chartered Institute of Bankers Ghana · Ghana Association of Banks · John Awuah
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] The Bank of Ghana has maintained its monetary policy rate at 14% since March. thevaultznews.com · www.myjoyonline.com
- [● 2 SOURCES] The average commercial lending rate has fallen to 15.9%. thevaultznews.com · www.myjoyonline.com
- [○ 1 SOURCE] Private sector credit grew by 29% year-on-year in real terms. www.myjoyonline.com
- [● 2 SOURCES] New bank loans in Ghana are attracting interest rates between 9% and 12%. thevaultznews.com · www.myjoyonline.com
- [○ 1 SOURCE] Banks require more effective court recovery processes to manage non-performing loans (NPLs). thehighstreetjournal.com