Reduce lending rates to Private Sector – Akufo-Addo to Banks
President Akufo-Addo has challenged Banks in Ghana to complement the achievements of his government by reducing lending rates to the Private Sector.
With inflation declining to 10.3 as at January 2018, growing improvement in our micro economy, a fall in the 91 day treasury bill rate from 16.4% in 2016 to 13.4% as at today, there have been concerns over why most key indicators are declining, but lending rates of banks are still high.
Delivering an address at the official opening of the newly built Ecobank Ghana Head Office in Accra, President Akufo- Addo said lending rates have remained stubbornly high averaging between 31.7% and 29.3% within the same period irrespective of the fact that Fiscal deficit has reduced and inflation declining.
He stated the “gap between what is happening with the decline in inflation and the rates being charged by banks is a gap we have to bridge”
The Managing Director of Ecobank Ghana, Daniel Sackey, in his welcome address indicated that Ecobank since 2012 has become the biggest banking institution in Ghana. Going forward, the bank intends to embrace fully the digitization of banking to make sure that the banks customers are given the best of service.
Board Chairman of Ecobank Ghana, Terence Darko, in a brief remark said Ecobank will be relentless in its effort to support the developmental agenda of Ghana. He added that the Bank will in the coming years increase it social responsibility efforts as well.
Ecobank Transnational Incorporated Group CEO, Ade Ayeyemi, observed that in today’s banking world, it is important to always come up with innovative ideas that would meet the needs of customers. This, Mr. Ayeyemi says is the motivation behind the construction of the New Ecobank head office complex.
Governor of the Bank of Ghana, Ernest Addison, Commended Ecobank for putting up such a huge edifice to serve as its headquarters in Ghana. He also disclosed that the Bank of Ghana has this morning issued new Corporate Governance Guidelines targeted at banks and other special deposit taking institutions. It is his hope that the new guidelines would go a long way to help streamline the governance of financial institutions in the country and minimize bad practices in the sector.
Ecobank Ghana was established as a private limited liability company under the companies’ code to engage in the business of banking. The Bank started operation in February 19th 1990, as a Merchant Bank and became the first bank in Ghana to receive a universal banking license from the Central Bank of Ghana when Universal Banking was introduced in 2003. Ecobank Ghana is supervised and regulated by the Bank of Ghana (BOG), which is the Central Bank of Ghana. Ecobank Ghana currently has over 77 branches in Ghana and a head count of 1611 as at December 2016.
Ecobank Ghana has grown consistently over the past years to become the biggest bank in Ghana. At the end of the financial year 2016, the bank had an asset size of GHS8.05billion and Profit Before Tax of GHS 462.6 million. The bank has over the years, made good returns to its shareholders with Return on average equity (ROAE) and Return on average assets (ROAA) averaging above 35% and 4% respectively over the past 5 years. As at end 2016 ROAE was 35.4% with ROAA of 4.4%.Ecobank Ghana has been the most profitable affiliate in the Ecobank Group and has experienced steady growth over the past twenty six years.
Ecobank Ghana is increasingly focusing on eServices and eBanking to provide convenience to its clients. It is committed to serving its clients with Speed, Accuracy and the highest level of professionalism. – Wilberforce Asare