“The persistence of high interest rates in Ghana is the collective responsibility of banks, the fiscal authorities and the monetary authorities. High bank lending rates and large spreads are of particular concern, not only can they not be justified in terms of the costs and risks in the industry, they also reflect industry inefficiencies, low and ineffective competition, and collusive practices. The monetary authorities cannot remain aloof but must exercise their regulatory authority to correct an obvious market failure in credit system by capping interest rate spreads at the minimum.”
