Financial expert Obiri Yeboah had stress on the matter of Ghanaians repaying their loans in order for banks to thrive.
Speaking on the topic of the recovery of Ghana’s economy to drive the banking sector, he emphasized that this is why the banking sector is failing.
Speaking to Kasapa news he said that one of the major challenges in the banks is high non-performing loans but most Ghanaians are the cause of it.
” Ghanaians as a whole should be dedicated that they will pay back the loans they’ve collected. One of the challenges facing banks is high non performing loans, many people have collected huge sum of loans from financial institutions but they are not paying back”. He said
He added that this problem has made the banks increase their interest rate on loans for the few who are able to pay back.
” With the few who are able to pay, the banks has increase their interest rate so that even if the majority don’t pay back , with the few people paying they might fill in” he added
He later urged the government to try and reduce the policy rate on banking services from the 27% so that the interest rate on loans cam also reduce.
” The government must find a way to reduce the policy rate that is 27% because if banks go to bank of Ghana to borrow money I’m ordered for them to lend to customers while they ( banks ) are paying back on the 27% it causes them to also increase their interest rate. They use the policy rate as the base in charge their interest rate” he said.
Source : Rita Nsiah