Banks in Ghana will have no choice but to boost lending as interest rates continue to fall, President of the Association of Ghana Industries (AGI), Dr. Humphrey Ayim-Darke, has said.
Speaking on Joy News, he noted that the Bank of Ghana’s latest cut in its policy rate removes any excuse for banks to hold back on credit.
“With the Development Bank Ghana coming on board and new guarantee schemes in place, banks now have the freedom and capacity to take bigger risks in lending,” he explained.
The central bank recently slashed its key policy rate by 350 basis points to 21.5%—the second major cut in three months—citing sustained disinflation, robust growth, and stronger external buffers. Inflation has dropped sharply and is expected to hit target by year-end.
Dr. Ayim-Darke believes the easing cycle will fuel banking activity and strengthen Ghana’s economic recovery. “Market forces leave the banks with no choice but to lend. Even Treasury bill rates are pushing them to rethink their models. Real banking is coming back to the table,” he said.
But he also warned that the gains will only last if regulators remain firm. “The risk now lies in regulatory support. Without it, some of these achievements could easily be derailed,” he cautioned.
Source: Angel No Lie
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