I think this guy is also lazy in his analysis! Why do you attack the banks? The root cause is the bank of Ghana or government making Treasury Bills so attractive and risk free as compared to lending to SME. Any sensible insti ... read full comment
I think this guy is also lazy in his analysis! Why do you attack the banks? The root cause is the bank of Ghana or government making Treasury Bills so attractive and risk free as compared to lending to SME. Any sensible institution would off course do as the banks doing. If the government/bank of ghana decides the Treasury bill rate is 5% because its risk free do you think the banks would buy them instead of lending to SME?
Yaw Yeboah 8 years ago
If the Government decides to lower the interest rates for investment in Treasury Bills & increases the risks then they will become less attractive to investors. Where are all these SME's that will provide Commercial Banks wit ... read full comment
If the Government decides to lower the interest rates for investment in Treasury Bills & increases the risks then they will become less attractive to investors. Where are all these SME's that will provide Commercial Banks with better investment returns than Treasury Bills?
Ewurasi Manu 8 years ago
They would invest where there is less risk but maximum Profit!
Rather ask the Govt to create the enabling environment to make it attractive and less risky to loan to SMEs and reduce its appetite for T-Bills for money to be ... read full comment
They would invest where there is less risk but maximum Profit!
Rather ask the Govt to create the enabling environment to make it attractive and less risky to loan to SMEs and reduce its appetite for T-Bills for money to be freed for SME support!
daladam 8 years ago
ONCE A U.S PRESIDENT SAID YOU CAN HAVE PEACE AND YOU CAN HAVE BANKS BUT NO DEMOCRATY EVER HAD BOTH.
BANKSTERS THAT CONTOL THE MONEY SUPPLY ARE ACTING LIKE MAFIA RUNNING PONZI SCEAM TO RIPP OFF THE PEOPLE AND THE FUN ... read full comment
ONCE A U.S PRESIDENT SAID YOU CAN HAVE PEACE AND YOU CAN HAVE BANKS BUT NO DEMOCRATY EVER HAD BOTH.
BANKSTERS THAT CONTOL THE MONEY SUPPLY ARE ACTING LIKE MAFIA RUNNING PONZI SCEAM TO RIPP OFF THE PEOPLE AND THE FUNNY THING IS GHANA FALKS
FALL THE BANKSERS LIES. WAKE UP PEOPLE NEVER ,EVER TRUST ANY BANK RESPECT THEM AND HIGLY SUSPECT THEM
ABREFA BUSIA 8 years ago
As profit making entities managing the investments of their shareholders, commercial banks have only one main objective, that is, creating value or wealth for these shareholders. Mind you, commercial banks don't just grow mo ... read full comment
As profit making entities managing the investments of their shareholders, commercial banks have only one main objective, that is, creating value or wealth for these shareholders. Mind you, commercial banks don't just grow money, they raise money from investors who demand sufficient returns for the funds they give to these banks. Commercial banks management in order to pay such returns to their shareholders must invest in financial instruments or assets classes yielding more than the returns they expect to pay their shareholders.
There are a couple ways to derive the expected returns (A) investments (i) in risk-free assets such as Government T-Bills or T-Bonds and(ii) in risky equity or stocks. (B) Secondly commercial banks make money from the loans they advance to businesses (including SMEs) or individual private customers.
Loaning money to businesses or individuals is considered high risk because of the possibility of default by these types of clientele and the returns may not be that different from the returns one receives from investing in T-Bills or T-Bonds which are Government securities and therefore have virtually no risk attached to them.
If you are in such a position to invest money received from investors looking for sure returns, would you loan the funds to SMEs(risky) or in T-Bills (no risk)? The answer is obvious which explains why commercial banks are not responding to request from SMEs and therefore killing the private sector.
SOLUTION:
1) The Bank of Ghana MUST CUT the interest rate commercial banks borrow from and lend to themselves.
2) Put in place a policy that will control the rate at which commercial banks can lend to the public (businesses, SMEs and individual clients)
3) Bank of Ghana MUST then cut the T-Bill and T-Bonds rates.
Otherwise, the milking of the system by commercial banks through the issuance of Treasury assets (T-Bills/Bonds) will continue unabated.
Commercial Banks are therefore not lazy, rather they are smart investors.
The source of the problem is Bank of Ghana. Who knows, some big shots in the country may be enjoying same high interest income from their investments in these T-Bills so even though they may know the solution cited above, they will refuse to implements them while the rest of the economy suffers. Greed, Greed, Greed must end.
MENSA 8 years ago
when did they do anything for us for free? answer nwever
when did they do anything for us for free? answer nwever
SBD 8 years ago
Mr. Agyei, this will not make you popular. These are worn out cliches and emotional arguments. Do you expect any rational commercial bank manager to finance buying and selling of plastic toys and mobile phones from Dubai. Ple ... read full comment
Mr. Agyei, this will not make you popular. These are worn out cliches and emotional arguments. Do you expect any rational commercial bank manager to finance buying and selling of plastic toys and mobile phones from Dubai. Please grow up and think. These banks are not philanthropies so go and chill somewhere because your views will never pan out. If your lazy government wants to live in the comfort of the office of the president and plan on issuing debt to finance their corrupt activities, we the masses will take advantage of the cool 25% interest and relax. What do you expect the banks to do? Do you think deposits just sit in a bank and grow interest? Preach to that useless governmet of yours.
Yapo 8 years ago
This is the area the BNI should show interest. The BOG has intentionally set the high interest rates so that those corrupt politicians can take advantage of.
As for the Ghanaian banks, the least said about them the better: t ... read full comment
This is the area the BNI should show interest. The BOG has intentionally set the high interest rates so that those corrupt politicians can take advantage of.
As for the Ghanaian banks, the least said about them the better: they lack creativity and are bereft of business ideas. Instead for them to serve the national interest, they seek the parochial interest of shareholders.
The mask 8 years ago
Many families are saying that blog.boachsoft.com is the most helpful family finance resource they have ever come across.
Many families are saying that blog.boachsoft.com is the most helpful family finance resource they have ever come across.
MOSACH 8 years ago
Banks in Ghana could import needed machines needed for the economy e.g. the Agricultural sector getting tractors and other implements and the banks must get their money when the cocoa money is paid just to start with. The oth ... read full comment
Banks in Ghana could import needed machines needed for the economy e.g. the Agricultural sector getting tractors and other implements and the banks must get their money when the cocoa money is paid just to start with. The other sector is the food processing industries. They must also get packaging machines and laboratories research, package and preserve most of the seasonal products and other products for export. In addition banks must offer seminars to educate SME's about marketing and packaging, help these SME's to acquire the FDB licence which is a struggle to obtain without paying bribes. Job creation must be supported and who does this it is the banks. Our government is so corrupt that they will collapse the nation, because clueless governments destroy their countries. The banks must offer incentives and attractive packages to woe and support businesses. It seems they are also not in the mood to help businesses because of the risk but they can at least turn the table with a carefully planned and executed strategy to help businesses to grow.
I think this guy is also lazy in his analysis! Why do you attack the banks? The root cause is the bank of Ghana or government making Treasury Bills so attractive and risk free as compared to lending to SME. Any sensible insti ...
read full comment
If the Government decides to lower the interest rates for investment in Treasury Bills & increases the risks then they will become less attractive to investors. Where are all these SME's that will provide Commercial Banks wit ...
read full comment
They would invest where there is less risk but maximum Profit!
Rather ask the Govt to create the enabling environment to make it attractive and less risky to loan to SMEs and reduce its appetite for T-Bills for money to be ...
read full comment
ONCE A U.S PRESIDENT SAID YOU CAN HAVE PEACE AND YOU CAN HAVE BANKS BUT NO DEMOCRATY EVER HAD BOTH.
BANKSTERS THAT CONTOL THE MONEY SUPPLY ARE ACTING LIKE MAFIA RUNNING PONZI SCEAM TO RIPP OFF THE PEOPLE AND THE FUN ...
read full comment
As profit making entities managing the investments of their shareholders, commercial banks have only one main objective, that is, creating value or wealth for these shareholders. Mind you, commercial banks don't just grow mo ...
read full comment
when did they do anything for us for free? answer nwever
Mr. Agyei, this will not make you popular. These are worn out cliches and emotional arguments. Do you expect any rational commercial bank manager to finance buying and selling of plastic toys and mobile phones from Dubai. Ple ...
read full comment
This is the area the BNI should show interest. The BOG has intentionally set the high interest rates so that those corrupt politicians can take advantage of.
As for the Ghanaian banks, the least said about them the better: t ...
read full comment
Many families are saying that blog.boachsoft.com is the most helpful family finance resource they have ever come across.
Banks in Ghana could import needed machines needed for the economy e.g. the Agricultural sector getting tractors and other implements and the banks must get their money when the cocoa money is paid just to start with. The oth ...
read full comment
ripping off falks with this mafia interst rates