Claims that Traders Bank not feasible ‘laughable’ – GUTA
President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng has described as laughable, assertions being made that the establishment of the Ghana Traders Bank is not feasible.
According to the trading group, explanations that the Bank will not be able to reduce interest rates to as low as 20 per cent has no scientific basis hence those claims must be ignored.
Dr Obeng said this in reaction to concerns made by Banking Consultant Nana Otu Acheampong suggesting that plans to establish Traders Bank should rather be made as a credit union.
Speaking to Class Business’ Pious Kojo Backah, Dr Obeng said: “I can say that this is laughable and I don’t know the scientific reason behind this. What did they attribute to the high interest rate?
“They attribute it to the high risk, the default rate and so if you are able to minimize the default rate to the barest minimum, have you not succeeded in transferring the benefit to the one coming to borrow from you?” he asked.
He explained further that: “The fact that we are also going to minimise our interest rate which is not going to consume the capital or the monies we are lending to our customers then of course our customers will be able to pay.
“Most times the interest rate itself consumes the monies given to customers and so payment becomes difficult but if we are able to minimise the interest rate and also do away with bad loans which can be attributed to 40 percent corruption in in the bank itself i.e the inefficiency of the bank and its inability to do the necessary due diligence and they pass it on to otherwise a very good customer and then you share the risk for all of them, how fair is that?”
He noted that with the Traders Bank, “We’re going to do away with it so it’s a simple mathematics and it’s not rocket science.”
Source: Classfmonline.com
Trending News
UE/R NDC comms. bureau suspends party activities to mourn Agorogo
10:17Ejisu roads see massive overhaul ahead of by-election
09:52Election stakeholders schooled on Internet shutdown
10:32Court discharges former PPA boss Adjenim Boateng
11:14British High Commission donates protective equipment worth £260,000 to GAF
09:12Dec 7 polls: Let’s stay united, do away with internal disputes – Asiedu Nketiah to NDC members
12:51Pension: Public sector workers to strike May 2
10:18NPP Performance Tracker emphasizes toilets over substantive infrastructure dev’t projects — Dr. Sa-ad Iddrisu
09:00Free SHS: Market women laud policy for bridging inequality in education
09:47MFC decries NPP's bribery of supporters
10:11