Bank of Baroda emerged as the best place to secure credit according to the latest Average Interest and Annual Percentage Rate APR released by Bank of Ghana (BoG).
The report assessed the actual rates changed by some 32 banks, ending the month of April with emphasis on the actual interest charged on loans and credit advances and interest on deposits by commercial banks.
Baroda according to the report offered as low as 22 percent and 28 percent for businesses operating in the Agric, Manufacturing, Commerce and Construction, that turned to the Bank.
It also came up as the best place for persons looking for loans mortgage, vehicle loan and other consumer credits.
Capital bank emerged as the institution that offered the highest interest on deposits, as it was giving customers an average interest of 17.4 percent.
The Central Bank has maintained that it want to use the regular publication of these reports to help drive down the cost of credit in the country.
The review was based on figures available as at April 30, 2017 which showed that industry average on base rate as at April 30, 2017 was 26.8 per cent, a marginal increase of 0.1 percent, compared to 26.7 percent at the end of March.
At the start of the year (ending ofJanuary), the industry average base rate was 27.6 percent, giving a year-to-date drop of 0.8 percent.
The average deposit rate as at April 30 was 11.3 per cent, a marginal increase of 0.1 percent, compared to 11.2 as at March 31.
At the start of the year (end-January), the average deposit rate was 11.9 per cent, giving a year- to- date decrease of 0.6 percent.
According to the Central Bank, 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 publication of these rates is to promote transparency in the pricing and provision of banking services.
Bank of Ghana aims to promote accountability of its decision making and build an understanding of the monetary policy formulation process among stakeholders through the publication of these documents.