Banks are blaming the current structural challenges inherent in the economy for the high interest rate regime. According to them, it will be difficult to see a drastic cut in lending rates because of the risk associated with lending, high default rate and government’s inability to pay monies owed contractors on time. These were some of the views put forward by commercial banks at a meeting organized by Investment firm, ECOBANK Development Corporation. The meeting was looking for ways banks can respond quickly to policy rates cut by the Bank of Ghana. But the Chief Executive of UT Bank, Prince Kofi Amobeng says it will be very difficult to see those huge drops in their lending rates. "Interest rates cannot come down. They cannot. There are bankers here if it were possible we would have used interest rate to compete. We can’t do it. “…The issue is, do we want interest rates to come down for banks to collapse or we want interest rates to be at what is sustainable so the banks and other financial institutions can grow,” he quizzed. Source: Joy Business/Myjoyonline.com