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In June 2024, the average bank loan interest rate fell slightly to 31.10%, lower than 31.15% in the same period last year.
The decline in borrowing costs is in line with a fall in inflation, according to the Bank of Ghana.
The average loan interest rate started at 32.94% in January 2024, and showed a downward trend in February and March, reaching 32.77% and 32.37% respectively, and continued to fall in April, reaching 31.25%.
As of June 2024, Ghana’s reference rate is 29.44%.
On July 26, 2024, the Monetary Policy Committee of the Bank of Ghana decided to maintain the policy rate at 29.0%. The central bank noted that the inflation outlook for this year is uncertain due to recent exchange rate pressures, increases in utility bills, and increases in fuel ex-factory prices.
However, lending rates can vary widely between different banks and the sectors they serve. Some banks offer loans at the Ghana reference rate, while others may charge interest rates as high as 40%, depending on the risk profile of the client.
At the same time, the banking sector’s performance in the first half of the year also showed that the banking sector is continuing to shake off the impact of the domestic debt exchange program.
Total assets grew by 33.3% to GH¢323.1 billion at the end of June 2024, compared to a growth of 21.2% at the end of June 2023.
However, the industry’s nonperforming loan ratio rose to 24% in June 2024 from 18.7% in the previous year.
citinewsroom.com
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