Determinants of credit rationing to the private sector in Ghana: A case study of some commercial banks in the Greater Accra Region of Ghana

Determinants of credit rationing to the private sector in Ghana: A case study of some commercial banks in the Greater Accra Region of Ghana

Frank Gyimah Sackey

This study was designed to investigate the rationing behavior of some commercial banks in the Greater Accra region, by looking at the impact of some variables on the amount of loan realized even in the era of interest rate liberalization. A single equation model involving the amount of loan realized as the dependant variable, and interest rate, the value of assets, the value of collateral security, net profits, experience in business, sex, age and purpose as the exogenous variables. The explanatory variables were jointly significant in explaining the dependant variable. The results imply that even though interest rate may be liberalized" 0 that the banks could determine their own interest rates that will make them allocate credit to the private sector. they will still ration out credit instead since other determinants such as those analyzed in this research are of much importance in determining credit allocation due to the …

2010

https://scholar.google.com/citations?view_op=view_citation&hl=en&user=dzxWX-AAAAAJ&cstart=20&pagesize=80&citation_for_view=dzxWX-AAAAAJ:u-x6o8ySG0sC

English