Bank cleanup could reduce interest rates, enhance financial inclusion – Economists
January 14, 2019
Economist, Prof. Peter Quartey of the University of Ghana expects a drop in interest rates following the sanitisation of the banking sector by the Central Bank.
Universal Banks operating in the country were given up to December 2018 ending to raise the new minimum capital requirement of GHc400 million or be downgraded to a Savings and Loans entity if their corporate governance structure was above board.
Prof. Quartey further reckons that non-performing loans (NPLs) on the books of banks will also drop as the new regime will compel banks to give credit to individuals and businesses who are credit worthy.