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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/4887

Title: The Impact of Bank of Ghana Policy Rate on Commercial Bank Lending Rate: The Study of Barclays Bank Ghana.
Authors: Cobbinah, Nicholas Ekow
Issue Date: 5-Feb-2011
Abstract: This research examines the impact of Bank of Ghana base rate on commercial bank lending with Barclays Bank Ghana as a case study. The main purpose of the study is to find the relationship between the Bank of Ghana Base Rate and the Commercial Banks Lending Rate, the relationship that exist between Lending Rate and the other variables and also find out the degree of responsiveness in the lending rate with respect to a change in the other variables. Data used is basically secondary from the Bank of Ghana Records, internet, books and publications such as magazines, journals and periodicals. Inferential statistics are used to draw conclusions about the reliability and generality of the findings. The preliminary findings depicted that Lending rate clearly was higher than both the Government Policy on Inflation and the Bank of Ghana Base rate for the years 2009, 2010 and 2011 in terms of the percentage fixed at that point in time. This could mean that Commercial Banks, of which Barclays Bank was of no exception considered very importantly the Bank of Ghana Base Rate and Government Policy on Inflation before deciding on their Lending rate. There was an evidence of a very strong positive relationship between the Bank of Ghana Base Rate and the Lending Rate. This means that as the Bank of Ghana Base Rate increases, the Commercial Bank Rate also increase and as the Bank of Ghana Base Rate decreases the Commercial Bank Lending Rate also decreases. Based on the findings of the study it was evidenced that both Lending Rate and Base Rate were likely to decline further in 2012. Thus, Barclays Bank must find other innovative ways of increasing their profit through fee incomes and commissions since incomes from interest rate will be declining. Next, the bank could also increase profit by booking a larger volume of loans in other to make up for the short fall of the interest income.
Description: A Thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology, Kumasi in partial fulfillment of the requirements for the degree of Commonwealth Executive Masters of Business Administration, June-2011
URI: http://hdl.handle.net/123456789/4887
Appears in Collections:Distance Learning

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