Ghana's banking industry average base rate falls to 26.7%

The banking industry average base rate as at the end of March stood at 26.7%, data from the Bank of Ghana has shown.

The data indicates a drop of 0.9 percent in the base rate from the month- end January rate of 27.6%.

The data is contained in 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 by banks.

On monthly basis, the data showed a marginal fall of 0.2% from the 26.9% recorded at the end of February.

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

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

In all, the list covers 31 banks.

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 Bank of Ghana says the publication of the rates was to promote transparency in the pricing and provision of banking services.

Bank of Ghana aims at promoting accountability of its decision making and builds understanding of the monetary policy formulation process among stakeholders through the publication of these documents.