GCB bank limited has announced its plans to review its lending rates downward.
This follows a disclosure by the management of the bank on Thursday 24th August, 2017.
In an encounter with the media, Managing Director of GCB bank, Ray Sowah stated “the exercise will depend on the customers and the deposit they have".
He noted that, the GCB bank’s management had made the conditional decision to review the lending rates downwards, for the benefits of customers from the acquired UT and Capital bank respectively - who had enjoyed relatively lower lending rates with the liquidated banks.
Mr. Sowah stressed that, before deciding on a lower lending rate, it will critically evaluate the risk to ensure that their assets are protected, or that they don’t endanger the long-term stability of the institution.
Last week, GCB bank had emerged winner of the bid to acquire the bankrupt UT and Capital bank, against two other banking institutions in the country who were shortlisted for the bid by the Bank of Ghana.
Some financial analyst have expressed the view that GCB bank is already taking on so much liability risk from its acquisition of the defunct banks.
Hence, it remains unclear as to the level of risk it would be exposing itself to by its consideration to review the lending rates downward (as part of efforts to please its inherited customers).