Business banks have assured that they’ll transfer shortly to scale back rates of interest if the Financial institution of Ghana (BoG) opinions the Money Reserve Ratio (CRR) for banks within the nation.
The banks have additionally promised to take measures to enhance lending to companies.
This is because of the truth that the regulatory measure has impacted on their liquidity and mortgage e-book.
The Managing Director and Chief Govt of First Financial institution, Ghana Victor Yaw Asante disclosed this on PM EXPRESS BUSINESS EDITION on February 27, 2025 with host George Wiafe.
Background
The BoG in 2024 launched a brand new CRR regime that hyperlinks the CRR necessities to loans-to-deposit ratios (LDRs).
The motion was a part of efforts to mop up extra liquidity within the banking sector.
The brand new regime contains:
* 25% CRR for banks with LDRs under 40%
* 20% CRR for banks with LDRs between 40% and 55%
* 15% CRR for banks with LDRs above 55%
CRR and Lending
Talking on the programme, Mr. Asante revealed that if the Financial institution of Ghana is ready to heed to the request, it would go a good distance to enhance the operations of banks.
“We’ve got made some passionate enchantment to the Financial institution of Ghana and hopeful that may very well be addressed quickly”, he added.
Cedi’s efficiency and Treasury invoice auctions
The cedi has been pretty steady in opposition to the US greenback over the previous months.
Mr. Asante referred to as for measures that may enhance the nation export earnings to extend Ghana’s reserves.
He appealed to the BoG to make use of interventions and strategic measures to handle the international change challenges with out straight interfering out there.
“We also needs to try to cope with expectations in addition to handle issues in a means that construct belief”, Director famous
On current restrict in demand for {dollars}, Mr. Asante, revealed that the state of affairs may very well be linked to enhance provide of international change in the marketplace.
On treasury payments public sale and participation of economic banks, Mr. Asante argued that the event ought to be seen as a requirement and provide state of affairs.
In line with him, the discount in treasury payments fee might additionally influence on value of credit score and lending fee if the development is sustained.
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