BoG Releases Banks’ Interest Charges – uniBank Tops List

Dr Ernest Kwamina Yedu Addison, BoG Governor

UniBank charges the highest base rate at 41.0 percent according to the Central Bank’s latest data on Annual Percentage Rates (APR) of interest charged on loans and credit advances and the average interest (AI) paid on deposits. SCB also charges the lowest at 16.1 percent.

The data is based on figures available as at 31st March, 2017.

The industry average base rate as at March 31, 2017, according to the survey on the 31 commercial banks, was 26.7 percent, a marginal drop of 0.2 percent from the 26.9 percent recorded at the end of February.

At end of January this year, the base rate was 27.6 per cent.

By comparison therefore, the base rate had dropped by 0.9 percent as at March 31, 2017 since the beginning of the year.

Royal Bank emerged the second highest charging bank at 34.8 percent followed by Sovereign Bank which pegged its rate at 34.5 percent.

Capital Bank charged 33.3 percent as the fourth highest followed by Sahel Sahara with 31.0 percent and UMB at 30.8 percent.

NIB charged 30.5 percent; Energy Bank exacted 30.3 percent while UT Bank charged 30.1 percent. Omnibank took the tenth position, charging 30.0 percent, while UBA emerged 11th at 27.9 percent.

Access Bank was 12th at 27.8 percent, Bank of Africa emerged 13th at 27.2 percent while Prudential Bank charged 26.4 percent.

First National Bank charged 26.0 percent while Ecobank charged 25.9 percent and GT Bank 25.3 percent.

GCB Bank charged 24.2 percent while First Atlantic Bank demanded 23.8 percent.

Zenith Bank charged 23.6 percent as Fidelity Bank took 23.4 percent.

GN Bank was next with 22.2 percent while ADB took 20.9 percent.

SG Bank charged 20.0 percent, Barclays Bank charged 19.1 percent, Stanbic Bank charged 18.7 percent while Bank of Baroda came second least at 17.0 percent.

At 11.2 percent as at March 31, 2017, the average deposit rate represents a drop of 0.4 percent from the 11.6 percent recorded at the end of February.

In January, the average deposit rate was 11.9 percent, giving a year-to-date (March 31, 2017) drop of 0.7 per cent.

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.

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BY Samuel Boadi