- Title
- Monetary policy and microfinance in Sub-Sahara Africa: Ghana’s perspective
- Creator
- Wiredu, Nana Kwame
- Subject
- Monetary policy -- Ghana
- Subject
- Microfinance -- Ghana Ghana -- Economic policy
- Date Issued
- 2018
- Date
- 2018
- Type
- Thesis
- Type
- Masters
- Type
- MPhil
- Identifier
- http://hdl.handle.net/10948/36037
- Identifier
- vital:33884
- Description
- Ghana, like many other developing countries in Sub-Sahara Africa, recognises the important role that the micro, small and medium-sized enterprises (MSMEs) play in economic development. These enterprises need an environment conducive to thriving and growth, to contribute to employment and overall output. A key pillar to this is access to affordable credit. Credit in itself is thought to be affected by monetary policy formulated and put forth by the central bank, on behalf of government. The pass-through effect of monetary policy on commercial banking rates, as charged by bank and non-bank financial institutions (NBFIs), is a concern for MSMEs. Therefore, this study sought to highlight cause and effects relationship between monetary policy, the lending rate and private sector credit, and also sought to find a possible cushion for MSMEs through the microfinance targeting approach. Annual aggregate monetary time series data from the Bank of Ghana (BoG) was analysed. Multiple linear regression and analysis of variance test results reveal evidence of a significant and proportional effect of both the monetary policy rate and commercial banking rate on credit to the private sector. The key implication of the findings is that the pass-through effect of monetary policy negatively affects MSMEs. The study recommends that governments in Sub-Sahara Africa (SSA), and particularly the government of Ghana, should take into consideration the effects of monetary policy on MSMEs, when formulating monetary policies. It is also recommended that governments in SSA should formulate policies that enhance MSMEs access to adequate and affordable credit to enable it contribute more to economic growth. Perhaps, this can be done through microfinance.
- Format
- vi, 94 leaves
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economic Sciences
- Language
- English
- Rights
- Nelson Mandela University
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NMU School for Economics, Development and Tourism
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | NANA KWAME WIREDU.pdf | 683 KB | Adobe Acrobat PDF | View Details Download |