Abstract
This paper investigates the effect of borrowing interest rate on the performance of listed banks. The study used panel data of three randomly sampled banks on the Ghana Stock Exchange from 2007 to 2017. The variables were the monetary policy rate, interbank rate, and customer deposit rate. Return on equity was used as the dependent variable for performance. The findings show an inverse relationship between banks’ performance and monetary policy rate, and customer deposit rates. This means an increase in these rates leads to a decrease in banks’ performance and vice versa. The findings also show that banks perform well when they borrow among themselves. This implies that, listed banks should borrow more from themselves to maximize their performance.