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Banks maintain average interest on loans for 3rd consecutive time

Dr. Ernest Addison

The average interest rate at which commercial banks lend to their customers remained unchanged at 25.7% in December 2017.

This is the third consecutive time that the base rates have been kept unchanged at 25.7 percent.

The base rate is the lowest rate at which a bank would lend to its customers.

According to the Bank of Ghana’s Annual Percentage Rates (APR) and Average Interest (AI) report, the Premium Bank tops with its base rate at 34.2 percent

This is however a reduction from the previously recorded 35.5 percent in November 2017.

Of the thirty-one (31) banks surveyed in the Bank of Ghana’s report, Premium Bank is followed by Unibank with the second highest base rate at 33.7 percent.

This is also a marginal reduction from the 34.9 percent it quoted as at November last year.

The Royal Bank, which topped the list in November last year with 35.5 percent as its base rate, now occupies the third position with a base rate of 33.6 percent.

The fourth and fifth positions are occupied by Sovereign Bank and Heritage Bank.

Their base rates are 32.7 and 30.2 percent respectively.

According to the report however, the five relatively lower base rates range between 15.8 and 19.4 percent.

The banks that are found within this range include Societe General and Stanbic Bank with base rates at 19.4 and 18.4 percent respectively.

Also, with 18.1 and 18 percent, Barclays Bank and Standard Chartered Bank place second and third positions among banks with relatively lower base rates.

The Bank of Baroda’s base rate is at 15.8 percent making it the bank with the least figure.

By: Anita Arthur/citibusinessnews.com/Ghana