Group Chief Executive of Ecobank, Albert Essien is insisting that banks cannot be blamed for the high interest rates.
Minister of Trade and Industry Ekwow Spio-Garbrah has over the past months been embarking on a campaign to force banks to drive down their high lending rates.
He has even called on business to demonstrate against these high lending charges.
Economists, like Kwame Pianim, have blamed the current economic environment for the high rates.
Mr. Albert Essien told Joy Business it is not even in the interest of banks to charge these high rates.
“Banks operate in an economy and if the fundamentals are right, no bank would want to charge very high interest rate,” he said, adding that such high rates could have a “knock off effect”.
He suggested what in his view could drive interest rate down, but charged government to take the leading role.
“We have had low interest rates in the past in early 2000 there about. I think we should get the micro right, we should get our fiscal policy right, combined with good monetary policy that in itself will drive interest rates down…
“I think that if the micro economic scene is right the banks will have no choice but to drop interest rates,” Mr. Essien asserted.
Source: Joy Online