Determinants of interest rates in ghana
10 Determinants of Interest Rates in Microfinance. April 17, 2010 by Fehmeen Source: lormet.com. While the necessity of charging interest on microcredit has been widely accepted, there seems to be plenty of disagreement over the level of interest rate charged by microfinance providers because the factors that go into these calculations are not well known. We often hear about high transaction The foregoing data clearly suggest that determinants of interest rate spreads may vary from country to country and even from region to region (Gelos, 2006); thus buttressing the need to pin-point the exact determinants of interest rate spreads in a country like Ghana. Interest rate liberalization may impact on interest rate systems. However, the experience of many countries with regards to interest rate liberalization has been mixed [15]. Whether interest rate liberalization does indeed impact positively on financial deepening and eco-nomic growth and for that matter deposit, as postulated by the proponents An Empirical Analysis of the Determinants of Interest Rates in Ghana. Lawrence Adu Asamoah Department of Economics, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana & George Adu The Nordic Africa Institute, Box 1703, SE-75147, Uppsala, Sweden Correspondence gyadu2011@gmail.com george.adu@nai.uu.se.
the determinants of interest rate spreads in Kenya's banking sector based on panel data analysis. Ghanaian economy macroeconomic factors. It finds.
determinants of interest rate spread in Ghana but the study only looked at market and firm characteristics despite the strong theoretical connection between of interest rate and fundamental macroeconomic factors. 2. Interest Rate This is the added value paid for the use of money borrowed from a creditor. The Bank of Ghana is the institution that influences interest rates in the country. 10 Determinants of Interest Rates in Microfinance. April 17, 2010 by Fehmeen Source: lormet.com. While the necessity of charging interest on microcredit has been widely accepted, there seems to be plenty of disagreement over the level of interest rate charged by microfinance providers because the factors that go into these calculations are not well known. We often hear about high transaction The foregoing data clearly suggest that determinants of interest rate spreads may vary from country to country and even from region to region (Gelos, 2006); thus buttressing the need to pin-point the exact determinants of interest rate spreads in a country like Ghana. Interest rate liberalization may impact on interest rate systems. However, the experience of many countries with regards to interest rate liberalization has been mixed [15]. Whether interest rate liberalization does indeed impact positively on financial deepening and eco-nomic growth and for that matter deposit, as postulated by the proponents An Empirical Analysis of the Determinants of Interest Rates in Ghana. Lawrence Adu Asamoah Department of Economics, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana & George Adu The Nordic Africa Institute, Box 1703, SE-75147, Uppsala, Sweden Correspondence gyadu2011@gmail.com george.adu@nai.uu.se.
1 Feb 2020 By Samuel Kwabena Obeng and Daniel Sakyi; Abstract: Purpose - The purpose of this paper is to examine macroeconomic determinants of�
It was established that nominal foreign interest rate and expected inflation were long run determinants of demand for money while real income and nominal� Bank interest rate spread reflects the difference between ex-ante lending and deposit rates. It generally measures bank intermediation efficiency. Higher interest� interest rate spreads in Ghana. English (2002) uses Engle and Granger two-step method on aggregate data for analyzing net interest margins and interest rates on� 31 May 2018 This study examines variations in interest rate and investment determination in Ghana. The study is necessitated by the fact that previous�
Interest rate liberalization may impact on interest rate systems. However, the experience of many countries with regards to interest rate liberalization has been mixed [15]. Whether interest rate liberalization does indeed impact positively on financial deepening and eco-nomic growth and for that matter deposit, as postulated by the proponents
The central bank must improve its monitoring and regulation of the financial sector in order to reduce spreads.,The main novelty of the paper (compared to other studies on Ghana) lies on the one hand; analysing macroeconomic determinants of interest rate spreads and, on the other hand, controlling for the impact of institutional quality on interest rate spreads in Ghana. The study found that factors affecting the determination of interest rate spread in Ghana are GDP, Exchange Rate, Prime Rate, Treasury Bill Rate, Liquidity, Overhead Costs, Loan Loss Provisioning and Profit Margin. Interest rate liberalization may impact on interest rate systems. However, the experience of many countries with regards to interest rate liberalization has been mixed [15]. Whether interest rate liberalization does indeed impact positively on financial deepening and eco-nomic growth and for that matter deposit, as postulated by the proponents This paper provides an empirical analysis of the determinants of the bank lending rate in Ghana using annual time series data from 1970 to 2013. We found evidence of a long-run equilibrium relationship between the average lending rate charged by commercial banks and its determining factors.
Bank interest rate spread reflects the difference between ex-ante lending and deposit rates. It generally measures bank intermediation efficiency. Higher interest�
An Empirical Analysis of the Determinants of Interest Rates in Ghana. Lawrence Adu Asamoah Department of Economics, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana & George Adu The Nordic Africa Institute, Box 1703, SE-75147, Uppsala, Sweden Correspondence gyadu2011@gmail.com george.adu@nai.uu.se. AN EXAMINATION OF THE DETERMINANTS OF INTEREST RATE SPREADS IN GHANA EXECUTIVE SUMMARY First, the Bank of Ghana, Ministry of Finance and Ministry of Food and Agriculture should adopt policies that will reduce inflation and increase real GDP growth. These policies include increase in food production, reduction of interest rates and corporate tax and increase privatisation. To help reduce interest rate margins, we recommend that banks should not get too big, the central bank should consider lowering the capital adequacy ratio and banks should be required to pass on to borrowers the full extent of reductions or increases in the central bank lending rate. Continued efforts at keeping inflation at bay will also help. university of ghana determinants of lending interest rate and loan recovery rates of microfinance institutions in ghana: a case study of the accra metropolis by gifty okunor 10637990 a long essay presented to the department of finance, university of ghana in partial fulfilment of requirements for the award of master of business The rise and fall of economic activity is the cause for interest rates to variey. The theory of interest rate is slightly deep. The prime rate of a nation is the basis on which other interest rates are determined, like repos, systematic risks and
To help reduce interest rate margins, we recommend that banks should not get too big, the central bank should consider lowering the capital adequacy ratio and banks should be required to pass on to borrowers the full extent of reductions or increases in the central bank lending rate. Continued efforts at keeping inflation at bay will also help. university of ghana determinants of lending interest rate and loan recovery rates of microfinance institutions in ghana: a case study of the accra metropolis by gifty okunor 10637990 a long essay presented to the department of finance, university of ghana in partial fulfilment of requirements for the award of master of business