The Determinants of Lending Rates in Ghana

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The main objective of this study was to determine factors that impact lending rates in Ghana. Secondary data was obtained from Ghana Statistical Service and Price Water House Coopers regarding inflation, GDP and the various bank factors from 2005 to 2010. The findings indicated that for bank specific factors, lending rates in Ghana increases with increasing interest expense. Whiles for industry specific factors, the findings indicated that lending rates decreasing with increasing T-bill rates. Again, for macroeconomic factors, inflation and gross domestic product were found to impact lending rates in Ghana. Lending rate was found to increase with increasing with increasing inflation and gross domestic product.
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,