Economic news for Sunday March 18, 2018
The Bank of Ghana on Friday released its latest data on annual percentage rates (APRs) of interest charged on loans and credit advances and average interest (AI) paid on bank deposits.
Data based on figures available as of February 28, 2018 shows that the industry’s average base rate as of February 28, 2018 was 24.5%, a decrease of 1.1% compared to the average rate at the end of January 2018..
A statement from the Bank indicates that on a year-over-year basis, the figure at the end of February 2018 represents a decrease of 2.4% compared to the same period last year.
The average base rate at the end of December 2017 was 25.7%.
On the deposit front, the average deposit rate at the end of February 2018 was 10.1%, a decrease of 0.3% compared to the rate recorded at the end of January 2018.
Compared to the rate at the end of February 2017 of 11.6%, the figure at the end of February 2018 represents a decrease of 1.5%.
The average deposit rate was 10.4% at the end of December 2017.
In total, the list covers 31 banks.
The APR is the real rate of interest that banks and non-bank financial institutions charge the public on loans and advances.
It reflects the actual cost of the loan and includes: fees and commissions charged by banks.
Average interest paid on deposits is the average interest paid by banks on deposits over the period.
The base rate reflects the minimum interest rate that can be charged on loans and credit advances.
The publication of these rates aims to promote transparency in the pricing and provision of banking services.
Bank of Ghana aims to promote the accountability of its decision-making and enhance understanding of the monetary policy formulation process among stakeholders through the publication of these documents.