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I need calcuation The Ghana Reference Rate (GRR) was introduced by the Bank of Ghana in consultation with the Ghana Association of Bankers to replace
I need calcuation
The Ghana Reference Rate (GRR) was introduced by the Bank of Ghana in consultation with the Ghana Association of Bankers to replace the Base Rate model that was previously implemented by the universal banks. The GRR is a benchmark interest rate used in Ghana's banking industry. It is a weighted average of the interest rates of the 91-day, 182-day, and 1-year government of Ghana treasury bills, which are considered risk-free investments. A bank's risk premium is either added to or subtracted from the GRR to determine the price of its loans. This implies that borrowers would be charged a particular rate of interest above the base rate for borrowing from any commercial bank. Financial Reporting and Financial Market Analysis You are the financial analyst of your company. Your company wants to acquire a property to expand its operations. Assume, you advise your company to borrow from the bank to be able to acquire the property. What will be the borrowing rate the bank will charge your company for borrowing? Financial Reporting and Financial Market Analysis You are the financial analyst of your company. Your company wants to acquire a property to expand its operations. Assume, you advise your company to borrow from the bank to be able to acquire the property. What will be the borrowing rate the bank will charge your company for borrowing? Required: Download/obtain a recent financial statement (within the past 5 years) of any bank (in Ghana) of your choice. With your knowledge in strategic finance issues and the principle of financial statement analysis, provide a brief (general) report on the financial performance of the selected bank using its financial statement; and use the information from the financial statement as well as macro-economic policy indicators to estimate the Ghana Reference Rate. Additional Information - Suppose that the bank receives a required rate of return equivalent to the book value of the return on equity and the beta in the market is 0.75 . - Suppose the measure of Base Rate of the Bank is a proxy for the Ghana Reference Rate. - Use the 2023 (2rd Quarter) values for all macro-level indicators needed to compute the base rate. - Using the past year and the current year in your computation is an added advantage. Question 1 The Central Bank policy rate is one of the monetary tools that is use to regulate liquidity in an economy. The role of the regulator, the central bank, is to serve the public interest of the economy by maintaining financial and price stability. One of the tools for achieving this objective require that the central bank or the regulator sets policies that control the transmission mechanism of short-term interest rate, particularly monetary policy channels of short-term interest rates. Commercial banks play an intermediary role by borrowing at a rate from the central bank and lending it to individuals and organizations. The public usually had to borrow from the commercial banks to finance projects and programs which they do not have sufficient savings to cover. Notwithstanding the fact that there are other financing options to the public, the primary source of finance in Ghana recently is through bank loans. Such loans come at a cost higher than the price at which the commercial banks borrowed from the central bank Step by Step Solution
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