By Kofi Ahovi
Lending rates of universal banks operating in the country continue to remain high despite Bank of Ghana (BoG) reducing its policy rate from 18% to 16% in March this year.
According to the latest Annual Percentage Interest (APR) and Average Interest (AI) released by the BoG for the first quarter of this year, figures on vehicle, mortgage and other consumer credit loans, remain high at an average of 33%.
With this development, Ghana still remains one of the countries in the sub-region with high interest rates.
The APR report indicates that SG-SSB offered the best lending rates after all the banks were surveyed. It charged 27.01% for mortgage and other consumer credit and as well as vehicle loans. However it paid interest rate of 10.89% on deposits.
The APR is the true interest rate banks and non-bank financial institutions charge their clients on loans and advances. It reflects the true cost of borrowings and includes charges and commissions levied by banks.
The APR report encourages the banks to charge competitive rates at all times which are in line with their base rates.
Bank of Baroda, GT Bank, SGSSB and Standard Chartered Bank offered the best competitive rates for vehicles and mortgage loans.
While Bank of Baroda, GT Bank and Standard Chartered Bank offered rates of 29.75%, 29.92% and 30.4% respectively, SGSSB provided a rate of 27.01%.
On the other hand, The Trust Bank (TTB), Barclays and UT Bank offered the most expensive rates of 37.81%, 37.47 and 36.77% respectively for vehicles and mortgage loans.
With regards to consumer credit, SGSSB, Bank of Baroda, Standard chartered and GT Bank charged the best competitive rates of 27.01%, 29.75%, 30.41% and 30.92% respectively.
However, TTB, Barclays and UT Bank charged expensive rates of 37.81%, 37.47% and 36.77 respectively.
On the Average Interest, which is the average interest paid by banks on deposits, the National Investment Bank, Stanbic and Merchant charged the best deposit rates of 16.75%, 15.17% and 14.71% respectively.
On the other hand, International Commercial Bank, Intercontinental Bank, HFC and Prudential Bank charged the least rates of 7.67%, 8.40%, 9.33%, and 9.59% respectively on deposits.
Lending rates of universal banks operating in the country continue to remain high despite Bank of Ghana (BoG) reducing its policy rate from 18% to 16% in March this year.
According to the latest Annual Percentage Interest (APR) and Average Interest (AI) released by the BoG for the first quarter of this year, figures on vehicle, mortgage and other consumer credit loans, remain high at an average of 33%.
With this development, Ghana still remains one of the countries in the sub-region with high interest rates.
The APR report indicates that SG-SSB offered the best lending rates after all the banks were surveyed. It charged 27.01% for mortgage and other consumer credit and as well as vehicle loans. However it paid interest rate of 10.89% on deposits.
The APR is the true interest rate banks and non-bank financial institutions charge their clients on loans and advances. It reflects the true cost of borrowings and includes charges and commissions levied by banks.
The APR report encourages the banks to charge competitive rates at all times which are in line with their base rates.
Bank of Baroda, GT Bank, SGSSB and Standard Chartered Bank offered the best competitive rates for vehicles and mortgage loans.
While Bank of Baroda, GT Bank and Standard Chartered Bank offered rates of 29.75%, 29.92% and 30.4% respectively, SGSSB provided a rate of 27.01%.
On the other hand, The Trust Bank (TTB), Barclays and UT Bank offered the most expensive rates of 37.81%, 37.47 and 36.77% respectively for vehicles and mortgage loans.
With regards to consumer credit, SGSSB, Bank of Baroda, Standard chartered and GT Bank charged the best competitive rates of 27.01%, 29.75%, 30.41% and 30.92% respectively.
However, TTB, Barclays and UT Bank charged expensive rates of 37.81%, 37.47% and 36.77 respectively.
On the Average Interest, which is the average interest paid by banks on deposits, the National Investment Bank, Stanbic and Merchant charged the best deposit rates of 16.75%, 15.17% and 14.71% respectively.
On the other hand, International Commercial Bank, Intercontinental Bank, HFC and Prudential Bank charged the least rates of 7.67%, 8.40%, 9.33%, and 9.59% respectively on deposits.
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