The Bank of Ghana has defended universal banks in the country following concerns about their investments in treasury bills.
[contextly_sidebar id=”S1S1C478dLu2RU4Qhamu7xwt7RAZ9hD4″]The Institute of Statistical, Social and Economic Research (ISSER) lashed out at commercial banks for their heavy investments in T bills and called on them to be innovative in helping rope more people into the banking sector.
Most of the 28 commercial banks in the country have been spending more than 50% of their investment portfolios on buying Treasury bills due to the high rates.
Interest rate on 91 day treasury is at 25% while a 182 day bill is selling at 26%.
According to the Bank of Ghana investment in treasury bills as a share of total investment in the banking sector, increased to 62.8 per cent in February 2014, from 49 per cent in February 2013.
But the Governor of the Bank of Ghana Dr. Henry Kofi Wampah insists the banks have improved their investments in lending to the public over the years.
“It is not true that the banks don’t lend …credit to the private sector went up by 36.4% year on year (growth in credit), which is still significant”, he stated.
Responding to concerns that the banks are involved in lazy bank , Dr. Wampah admitted that even though the banks do invest in T Bills, they also do lending.
He said the Credit Reference Bureau and the Collateral Registry , will play key roles in gathering the needed information on the specific customers coming to borrow to help inform risk premium on the monies to be given out.
By: Rabiu Alhassan/citifmonline.com/Ghana