Due to Ghana’s current economic crisis, some of the country’s commercial banks are reportedly starting to halt lending, particularly to new clients.
The event, according to a Joy Business report, follows the Bank of Ghana’s recent announcement of a 250 basis point increase in the monetary policy rate to 24.5 percent.
The portal said that emails have since been sent to relationship managers and officers of these banks instructing them to halt lending to new clients, albeit it did not disclose any other information on these banks.
It explained that the move seeks to reduce risk exposure in advancing loans to new customers.
Other factors which are likely to impact this decision can be attributed to non-performing loans of banks, and soaring interest rates which have forced some financial intermediaries to suspend or slow down lending especially to new customers.
Although demand for loans continue to surge due to the current economic conditions in the country, supply of loanable funds remain virtually low as Ghana is seeking to access an IMF-supported programme in 2023 once an agreement is reached.
Meanwhile, existing and credit-worthy customers of these banks are expected to continue to receive loans but at a much higher rate due to the recent policy rate hike.