OmniBank offers highest interest on deposits - BoG

OmniBank offers highest interest on deposits - BoG
Source: Ghana | | Joy Business
Date: 15-07-2017 Time: 08:07:33:am

OmniBank has once again emerged as the bank offering the highest interest on deposits according to the latest Bank of Ghana Average Percentage Rate (APR) and Average Interest data.

The report assessed rates of 32 banks ending June 2017 at the end of which it was discovered OmniBank offered 17.3 percent for individuals and businesses that kept their funds at the institution.

That last report issued by the Central Bank ending May and April also put OmniBank ahead of the other 32 banks reviewed

What banks actually offered to business

The data showed that the Bank of Baroda again came on top, by offering the lowest to firms operating in the manufacturing sector, Agric, commerce and construction.

The bank asked these firms to pay as low as 22 per cent and as much as 28 percent as interest on loans extended to them.

Reasons for APR and AI    

According to the BoG, the regular publication of this data is to promote transparency in the pricing and provision of banking services.

The Central Bank aims to promote accountability of its decision making and build an understanding of monetary policy formulation process among stakeholders through the publication.

The APR is the true interest rate banks and nonbank financial institution charge the public on loans and advances. It reflects the true cost of borrowing including charges and commissions levied by banks.

The Average Interest AI 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.

Marginal decline in Industry interest rates  

The data showed that there has been some decline in the cost of credit from January to June this year. Industry average base rate as at June 30, 2017, was 26.3 percent.

This represents a marginal decline of 0.3 percent, compared to the 26.6 percent at the end of May.

This shows from January to June, interest rate have dropped by 1.3 percent. On deposit, average deposit rate as at June 30 was  10.9 percent.

This represents a marginal decrease of 0.3 per cent, compared to 11.2 at the end of May 31. The development showed the interest rate offered during this period had declined marginally.

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