Average commercial banks’ lending rates have lowered marginally compared to a month ago.
Data shows that the industry average base rate as at October 31 was 25.7 per cent, a marginal decrease of 0.3 per cent, compared to 26 per cent at the end of September. At the start of the year (end-January), the industry average base rate was 27.6 per cent, giving a year-to-date drop of 1.9 per cent.
These were contained in the Bank of Ghana’s latest data on Annual Percentage Rates (APR) of interest charged on loans and credit advances and the Average Interest (AI) paid on deposits by banks. The data is based on figures available as at 31st October, 2017.
The average deposit rate as at October 31 was 10.4 per cent, the same as the rate at the end of September. At the start of the year (end-January), the average deposit rate was 11.9 per cent, giving a year-to-date decrease of 1.5 per cent.
In all, the list covers 31 banks, the BoG indicated in a release recently.
The APR is the true interest rate banks and non-bank financial institutions charge the public on loans and advances. It reflects the true cost of borrowing and includes charges and commissions levied by banks. Average interest paid on deposits is the average interest paid by banks on deposits over the period. Base rate reflects the minimum interest rate that can be charged on loans and advances.
“The publication of these rates is to promote transparency in the pricing and provision of banking services”, the BoG said.
The specific rates for individual banks are contained in the accompanying table.