Ghanaian banks show wide interest rate gap for small businesses

A survey by the Chartered Institute of Bankers, Ghana (CIB Ghana) reveals a significant disparity in interest rates across the country’s banking sector. While universal banks are lending at rates between 10% and 15%, community banks charge between 21% and 25%, and microfinance institutions charge between 31% and 40%.

This credit divide suggests that easing inflation and lower policy rates are not being transmitted equally to all borrowers. Small businesses and informal enterprises that rely on community and microfinance lenders face much higher financing costs, which may limit their ability to expand, invest, or create jobs. The survey noted that the proportion of community banks charging 21% to 25% rose from 36% in July to 46% in September.

The findings were presented during CIB Ghana’s third Post-Monetary Policy Committee Policy Seminar. The seminar followed the Bank of Ghana’s decision on September 24, 2026, to maintain the policy rate at 14%. Discussions at the seminar emphasized the importance of monetary policy transmission, credit growth, and the management of non-performing loans (NPLs).