'Local banks are greedy and short-sighted'

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• Nii 12 years ago

  This piece worth a doctorate research dissertation or Masters research thesis.
  Do we have the data to crunch, to know where the truth is? Is the minister and his supporters right about their assertion or the Chairman and CEO ...
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  This piece worth a doctorate research dissertation or Masters research thesis.
  Do we have the data to crunch, to know where the truth is? Is the minister and his supporters right about their assertion or the Chairman and CEO of UT Bank, Prince Kofi Amoabeng is right about his assertion?
  
  We might need data to run. A lot of talking, without support of scientific findings. Let us crunch the numbers and see.
  
  By the way, who have the data? Bank of Ghana? Please give us the data and we shall crunch them for the truth to come out. This is very important!

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• Cornell 12 years ago

  He also explained that currently the BOG regulates the base rate of every bank, which is calculated on the basis of specific factors, and the BOG insists that no bank should offer lending rates below their base rate so if any ...
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  He also explained that currently the BOG regulates the base rate of every bank, which is calculated on the basis of specific factors, and the BOG insists that no bank should offer lending rates below their base rate so if any bank offers lower lending rate it would be in violation of BOG regulations. If this is correct then the minister ought to consult with policy makers and have this ridiculous regulation change to induce competition. Capital One, did it in Canada a few years back. They offered a rate far lower than prevailing rates at the time. This prompted other financial institutions to lower their rates as well. No rules were violated. My firm can borrow $1 million for one year under 2% here in Canada....I should be able to lend that money in Ghana for 10% if I choose to without any violation.

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• DAN 12 years ago

  borrowing money in Canada or USA at 1-2% and loaning in Ghana at 30%!!!!! Unless the are doing below market rates for huge sums for people like the Presidents brother! Then it should be legal at least for low income wage earn ...
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  borrowing money in Canada or USA at 1-2% and loaning in Ghana at 30%!!!!! Unless the are doing below market rates for huge sums for people like the Presidents brother! Then it should be legal at least for low income wage earners to borrow to build house or buy goods to resell!

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• Ghanaba 12 years ago

  see for your self, people we place in high offices to work things out for the greater good of this nation ends up selling Ghana for less to outsiders.
  every year all banks in Ghana records profits above 100% this is greedy ...
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  see for your self, people we place in high offices to work things out for the greater good of this nation ends up selling Ghana for less to outsiders.
  every year all banks in Ghana records profits above 100% this is greedy profit!

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• GHFUO, change ur thinking 12 years ago

  He said the banks, motivated by insatiable desire to make huge short-term profits were giving loans at outrageously high interests while putting negligible interests of people's deposits.
  WHERE IS THE REGULATION FROM THE BAN ...
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  He said the banks, motivated by insatiable desire to make huge short-term profits were giving loans at outrageously high interests while putting negligible interests of people's deposits.
  WHERE IS THE REGULATION FROM THE BANK OF GH? THIS IS WHY WE HAVE THESE INSTITUTIONS TO ENSURE CHECKS N BALANCES. GH IS A NO MANS LAND. ANAYTHIGN GOES!

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• DAN 12 years ago

  the interest rate (prime) in usa is .2%....So home loans are 3.88% for 30 years, car loans 2-5% for 5-6 years and evil credit cars with decent credit... 8%-11%...Only people with terrible credit (pay late,don't repay or bankr ...
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  the interest rate (prime) in usa is .2%....So home loans are 3.88% for 30 years, car loans 2-5% for 5-6 years and evil credit cars with decent credit... 8%-11%...Only people with terrible credit (pay late,don't repay or bankrupt) get loan rates of 29%!!!!! Gov has the power to set max loan rates!

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• ADWOA 12 years ago

  hahahaha, If you government is lending from the market at 22% what rate do you expect the banks to lend to the general public? if average deposit rate is 21% how do you expect the banks to lend to the borrowers? these are ba ...
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  hahahaha, If you government is lending from the market at 22% what rate do you expect the banks to lend to the general public? if average deposit rate is 21% how do you expect the banks to lend to the borrowers? these are basic issues!. Mr MINISTER WAKE UP F0.0000L

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• ? Man 12 years ago

  No one is prevnting you(Fifi) from setting up your own bank and raking in the profits like these banks are. I guesss Fifi goes into business to lose his equity or run it as a charity. (please its about the bottom line) If th ...
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  No one is prevnting you(Fifi) from setting up your own bank and raking in the profits like these banks are. I guesss Fifi goes into business to lose his equity or run it as a charity. (please its about the bottom line) If the banks were running at a loss he would advocate for their closure.
  
  This is greed - that’s what it is – greed – plain greed. It is an indication of their obsession with short-term profits to the detriment of the greater majority of Ghanaians and the entire economy. And it is short-sighted because in the long-term it is counterproductive,”

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• KWASHIE ADJAH 12 years ago

  Data from the Monetary Policy Committee of the Bank of Ghana has revealed that President John Dramani Mahama has added a whopping GH¢15.6 billion to Ghana’s total public debt stock since being sworn into office as caretake ...
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  Data from the Monetary Policy Committee of the Bank of Ghana has revealed that President John Dramani Mahama has added a whopping GH¢15.6 billion to Ghana’s total public debt stock since being sworn into office as caretaker and substantive President within the period from July 2012 to August 2013.
  
  The Monetary Policy Committee of the Bank of Ghana yesterday revealed that Ghana’s total public debt stock “increased to GH¢43.9 billion (49.5% of GDP) at end of August 2013, from GH¢35.1 billion in December 2012.”
  
  “Of this, the domestic component amounted to GH¢24 billion compared to GH¢18.5 billion in December 2012. External debt stood at US$10.2 billion, up from US$8.8 billion in December 2012,” a report by the committee explained.
  
  However, checks made by the New Statesman further revealed that President John Dramani Mahama is responsible for contracting one-third of Ghana’s total debt stock.
  
  According to the MPC report of September 2012, “The total public debt at the end of July 2012 was GH¢28.3 billion, equivalent to 44.4 per cent of GDP.”
  
  This implies that President John Mahama has contracted a total of GH¢15.6 billion of debt for Ghanaians since becoming the President of Ghana.
  
  Many people have wondered what the impact of these huge loans has been on the lives of Ghanaians, considering the continued labour agitations that have taken place over the last year, the arrears owed to contractors, GETFund, NHIS and other statutory funds.
  
  Ghana’s total debt stock of GH¢43.9 billion means that every Ghanaian, down to a newly born baby, owes a total of GH¢1,688.42.
  
  The increase in the domestic debt component of the total debt stock from GH¢13.7 billion at the end of July 2012 to GH¢24 billion under the Presidency of John Mahama lends credence to the statements made by the economic team of the New Patriotic Party to the effect that the NDC government is competing with the private sector for funds.
  
  Analysts explain that what this means is that government has been competing with and squeezing out private enterprise from borrowing from the banks. Thus, private enterprises cannot access capital to grow their business in order to employ the youth.
  
  Yesterday’s MPC report further stated that total revenue and grants amounted to GH¢10.4 billion, lower than the target of GH¢12.5 billion, mainly as a result of shortfalls in domestic revenue collections and low disbursement of grants.
  
  Of this outturn, domestic revenue totalled GH¢9.8 billion, below the target of GH¢11.6 billion. Total tax revenue amounted to GH¢7.7 billion, lower than the target of GH¢9.1 billion. Grant disbursements were GH¢542 million, falling short of its target by 41.7 percent. Non-tax revenues amounting to GH¢2.1 billion for the period also missed the target by 12.4 per cent.
  
  Total expenditure including clearance of arrears and outstanding commitments amounted to GH¢16.0 billion, lower than the budget target of GH¢17.5 billion.
  
  “The above developments resulted in a fiscal deficit (cash basis) equivalent to 6.3 percent of GDP against a target of 5.6 percent. The deficit was financed mainly from domestic sources, resulting in a Net Domestic Financing (NDF) of GH¢4.4 billion, higher than the budget target of GH¢3.6 billion. Foreign financing of the budget amounted to GH¢1.3 billion, marginally lower than the GH¢1.5 billion target. Financing from Bank of Ghana amounted to GH¢1.0 billion, equivalent to 4.9 percent of projected revenue,” the MPC added.
  
  
  
  
  
  
  
  Source: Fiifi Arhin/thestatesmanonline.com

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• mike 12 years ago

  This CEO does not get it. He is supervising or managing a bank to fail. If you are giving loan to businesses at this rate, then they will fail. When they fail they are not able to pay back your money/loan. Do you get it. ...
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  This CEO does not get it. He is supervising or managing a bank to fail. If you are giving loan to businesses at this rate, then they will fail. When they fail they are not able to pay back your money/loan. Do you get it. Reward those who are able to pay with low interest rate and others will pay up to make everyone or all parties win. I have a business in Ghana and the cost of production not including interest is about 70 %. My profit is about 30% not coounting the interest. So, if the cost of the loan is 29%. The intrest consumes my profit, leaving me with nothing. So you fool undersatnd real economics and listen . Do not manage to fail. Do you get it.

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• JANGO 12 years ago

  GHANA'S LOCAL BANKS, PARTICULARLY THE BARCLAYS BANK AT ACHIMOTA, ARE VERY USELESS AND UNDER-RESOURCED.
  
  BARCLAYS BANK ACHIMOTA DOES NOT HAVE CASH WITHRAWAL AND MANY OTHER FORMS.
  
  THE BANKING HALL IS FILTHY AND LOOKS LIKE ...
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  GHANA'S LOCAL BANKS, PARTICULARLY THE BARCLAYS BANK AT ACHIMOTA, ARE VERY USELESS AND UNDER-RESOURCED.
  
  BARCLAYS BANK ACHIMOTA DOES NOT HAVE CASH WITHRAWAL AND MANY OTHER FORMS.
  
  THE BANKING HALL IS FILTHY AND LOOKS LIKE A MAKOLA MARKET STALL.
  
  LARGE AMOUNTS WITHDRAWALS PAINFULLY ENTAILS WRITING A LETTER OF WITHDRAWAL TO THE MANAGER OF THE BANK, AND IT DOES TAKE ALMOST 1 HOUR TO WITHDRAW MONEY EVEN AFTER HAVING WRITTEN THAT LETTER.
  
  I THOUGHT WE WERE IN THE 21ST CENTURY COMPUTER AGE.

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• messa 12 years ago

  AND I USUALLY NEVER AGREE WITH HIM

  AND I USUALLY NEVER AGREE WITH HIM

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• Helen Hutchful 12 years ago

  Fiifi Kwetey actually accusing somebody of greed? please propaganda don't work in business ok. I guess you also lost your edited speech, if not then indicate all the factors that inform the setting of the interest rate befor ...
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  Fiifi Kwetey actually accusing somebody of greed? please propaganda don't work in business ok. I guess you also lost your edited speech, if not then indicate all the factors that inform the setting of the interest rate before putting your propaganda across. ALL THESE PEOPLE AS STATE OFFICIALS...

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• Dickson 12 years ago

  Please, we are talking of economics here and not politics. This is a national problem and we must therefore approach it with the nationalistic attitude it deserves. However, those who want use political lenses in dealing with ...
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  Please, we are talking of economics here and not politics. This is a national problem and we must therefore approach it with the nationalistic attitude it deserves. However, those who want use political lenses in dealing with this problem should use a different platform and leave us think. Use the platform to educate we those who don't fully understand the economics of this issue.

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• Helen Hutchful 12 years ago

  In Ghana when you give GHc10,000 loans to 10 people only 3 will pay back willingly, and you would have to chase after 4 of the remaining 7 with resources worth 10% of the monies they took. The final 3 will not pay at all so i ...
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  In Ghana when you give GHc10,000 loans to 10 people only 3 will pay back willingly, and you would have to chase after 4 of the remaining 7 with resources worth 10% of the monies they took. The final 3 will not pay at all so it becomes a bad debt. If I took Gh100,000 from 4 people and I promised them 23% interest, Mr minister pls tell me what interest margin i should put on those loans considering paying salaries, utilities and taxes?

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• Gawuga 12 years ago

  Disgrace to education and civilisation

  Disgrace to education and civilisation

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• Gawuga 12 years ago

  Backward say the least.

  Backward say the least.

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• Gawuga 12 years ago

  Abusing our financial institutions do not solve problems but good policies from your stinking govt can help

  Abusing our financial institutions do not solve problems but good policies from your stinking govt can help

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• Kofi 12 years ago

  ...they may be taking lessons from the politicians.

  ...they may be taking lessons from the politicians.

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• km agyin 12 years ago

  Bank of Ghana must impose a ceiling on the interest rate the banks can charge, after all it is the Bank of Ghana which lends them money. There must be some regulation on these banks. America learned it the hard way and this h ...
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  Bank of Ghana must impose a ceiling on the interest rate the banks can charge, after all it is the Bank of Ghana which lends them money. There must be some regulation on these banks. America learned it the hard way and this has affected the rest of us all.

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