Business News of 2013-12-18

BoG rates commercial banks’ interest charges

Bank of Africa has emerged as the institution offering highest interest on deposits by businesses and individuals.

According to the latest Annual Percentage Rates (APRs) released by the Bank of Ghana, the Bank of Africa on the average offered an interest of 14.1 percent to depositors.

The rate offered by Bank of Africa was the highest among all the 26 commercial banks reviewed by the central bank in terms of the average rates they offered on deposits, as at the end of October 31.

For businesses operating in the commerce, construction manufacturing the agricultural sector, ECOBANK might be the best place to turn to for loans. This is because the bank was on the average lending to these businesses at a rate of 18.5 percent.

However, for those looking for a loan to buy a house or vehicle, the International Commercial Bank is the preferred institution because they would be lending to you at 23 percent on the bank.

According to the Bank of Ghana, APRs are the actual interest bank charge on a loan, including some of the hidden charges that would not be so obvious to a borrower.

The central bank believes regular publication of the rates would inform borrowers about prevailing rates on the market and put pressure on the commercial banks to reduce their interest charges.