The Director of the Institute of Statistical, Social and Economic Research (ISSER) Professor Felix Asante, has lashed out at commercial banks in the country for their heavy investments in treasury bills.
[contextly_sidebar id=”A9TBbWS949nt1AWq6cPI0Lzk5qyEL322″]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 yeilds.
Interest rate on 91 day treasury is at 25% while a 182 day bill is selling at 26%.
According to the Bank of Ghana, investments 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.
Professor Felix Asante laments the banks in the country are not being innovative.
“One thing which I will tell the banks not to be doing is to stop buying treasury bills, i think they should do proper business”, he demanded.
He said savings rate in Ghana is virtually zero and banks must start giving customers good rates to encourage them to save.
Meanwhile the Senior Vice President, Strategic Planning, Research and Corporate Affairs of The Royal Bank, Dr. Kwame Baah Nuakoh, has defended the decision of Banks to invest in Treasury Bills.
“We are not going to stop buying T Bills , so long as government is prepared to pay the amount of money they are prepared to give me on T Bills because i have investors and they are also looking at returns on their capital”, Dr. Baah Nuakoh insisted.
He added that, “if I have a safe asset as government of Ghana T Bills , i should go and chase somebody and give it to him as what…the banks are not father Christmas”.
By: Rabiu Alhassan/citifmonline.com/Ghana