Wednesday, 24 January 2018

Baroda, Stanchart remain best in lending rates

By Augustine Amoah

Bank of Baroda and Standard Chartered Bank continued to offer the least competitive lending rates to customers for the fifth time running this year, according to the latest Average Interest (AI) and Annual Percentage Rates (APR) released by the Bank of Ghana (BoG) which captured May 31, 2017 figures.

The two banks offered the cheapest loan rates respectively for enterprises. They offered rates of 22.0 and 23.0 percent respectively to consumers in agric, commerce, manufacturing and construction sectors.

For households, Bank of Baroda and Stanbic Bank offered the least lending rates of 22 and 25.3 percent respectively to consumers.

Omni Bank and NIB offered the most expensive loan rates for enterprises in agriculture, commerce and construction respectively. They charged between 37.9 and 38.9 percent as well as 37.2 and 38.2 percent respectively.

Other banks such as First Atlantic and The Royal Bank also offered very high lending rates.
Capital Bank and Sovereign Bank however did not make most of their rates available.

For consumer loans, GCB charged the most expensive rates of 40. 3 percent followed by The Royal Bank and Omni Bank which offered between 35.5 and 40 percent and 37.9 percent respectively.

With regard to liabilities or deposits, Omni and Capital Bank offered the highest attractive rates of 18.3 and 15.7 percent respectively to consumers.
In contrast, Stanchart Energy Bank and GT Bank paid the least deposit rates of 6.4, 6.4 and 6.8 percent respectively to clients.

According to the Bank of Ghana, the data reveals that the industry average base rate as at May 31, 2017 was 26.6 per cent, a marginal drop of 0.2 per cent, compared to 26.8 per cent at the end of April. At the beginning of the year, the industry average base rate was 27.6 per cent, giving a year-to-date drop of 1 per cent.

The average deposit rate as at May 31 was 11.2 per cent, a marginal decrease of 0.1 per cent, compared to 11.3 per cent as at April 30.

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.

The publication of these rates is to promote transparency in the pricing and provision of banking services. In all, the list covers 31 banks.

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