Following the banking sector clean-up exercise, he said he expected the disparity to narrow, given that the risk element to banks’ lending had been addressed by the clean-up; but that has not been the case. “If Bank of Ghana is lending to banks at 13.5 percent; what reason do banks have for lending in the 20s? What should be the margin, the spread between the bank rate and the lending rate? “Government spent billions undertaking these reforms, so why should the spread between the bank’s rate and lending remain at this level?” he asked, adding: “This is a problem that we must collectively look at”. “To do well in AfCFTA, AGI understands the importance of cost of doing business.

Source: GhanaWeb August 18, 2021 03:00 UTC