Dr. Henry Kofi Wampah in bus folder

Dr. Kofi Wampah, Governor of Bank of Ghana

Interest rates generally moved up on the money markets between December 2013 and February 2014.

The 91-day instrument increased to 23.5 percent from 19.2 percent. Similarly, the 182-day increased to 21.2 percent from 18.7 percent.

The 1-year note rate also rose to 22.5 percent from 17 percent, and the rate on the 2-year note increased to 23 percent from 16.8 percent.

Dr. Kofi Wampah, Governor of Bank of Ghana (BoG), who disclosed this during a press conference in Accra, said the average lending rates of the banks remained unchanged at 25.6 percent.

However, he said the base rate increased from 21.5 percent in December 2013 to 22.8 percent in February 2014, adding that the average rate on 3-month term deposits remained unchanged at 12.5 percent.

Dr. Wampah said the pace of growth in private sector credit was 33.0 percent year-on-year at the end of February 2014.

?The annual growth of real private sector credit however declined to 16.5 percent from 20.9 percent. The Credit conditions survey showed a general tightening of credit for all loan types during the period,? he said.

Dr. Wampah said in the first two months of the year, the banking sector remained relatively stable and continued to record growth in total assets.

?Total assets as at the end of February 2014 went up to GH?39.1 billion from GH?28 billion in February 2013.

?This was driven mainly by advances, which accounted for 47.1 per cent of the total. The growth in assets was mainly funded by deposits, which recorded an annual growth of 29 percent to GH?25.1 billion at the end of February 2014,? he said.

Dr. Wampah said the non-performing loans (NPL) ratio within the banking industry decreased to 12.7 percent in February 2014 from 13.5 percent in February 2013, while the ratio excluding the loss category, declined to 4.9 percent from 6.0 percent in the same period last year.

He said the 3-year bond rate rose to 23 percent from 19.2 percent.

Last month, the Central Bank?s Monetary Policy Committee increased the policy rate from 16 percent to 18 percent.

By Cephas Larbi


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