Every Ghanaian should know about the commercial banks in Ghana, and the services they offer, especially those who have reached eighteen. As the economy grows, we should become more responsible, and this means we should start saving and seeking other services from commercial banks. Moreover, when one establishes a relationship with the bank, they can easily get a loan and who knows, you could use this loan to build a successful business.
The Ghanaian banking industry has experienced some changes after the hard lessons of the 80’s. It was during that period that indigenous banks in Ghana, including a number of commercial banks in Ghana, suffered huge losses, and in 1989 the government took a strategic step and resurrected the banking sector.
After these changes, the banking system continued being upgraded and the number of banks was increased to 10 banks which comprised of three major commercial banks, and the others were secondary banks. In the 1990’s, the banks in Ghana experienced a surge in the number of deposits which made the banking industry in Ghana grow. Right now, Ghanaian banks have some of the highest lending rates in West Africa.
The banks that came up in the 1970’s included the indigenous banks in Ghana that are now make up the list of rural banks in Ghana. These banks are owned by local corporations and individuals and are used to provide banking to the rural population of Ghana. The list of rural banks in Ghana comprises of more than 100 banks that operate and are managed locally.
Minimum capital requirement for commercial banks in Ghana
One of the changes introduced in the banking sector in Ghana in a bid to help rescue the business was the introduction of the minimum capital requirements for the banks. The changes have continued to occur and in 2017, the minimum capital requirement for commercial banks in Ghana was raised from ¢120 million to ¢400 million. The banks were however given until December 2018 to comply with the new rule. The rule will also affect the new banks in Ghana 2018.
This increase made this minimum requirement the highest ever in the country. Initially, after the law regulating the banking sector was introduced, the capital requirement for a commercial bank was set at 740,000 dollars. It was later increased to ¢7 million in 2003 by a directive by the Bank of Ghana. This was aimed at increasing the capital base of the different commercial banks in the country. It was then raised to ¢60 million in the year 2008.
Later, the bank then gave the minimum requirements for new commercial bank branches in Ghana that wanted to enter the market to ¢120 million. Later, the rate was then raised to ¢400 million for all the commercial banks regardless of whether they are new to the market or not or if they are tier 1 banks in Ghana or not.
Functions of commercial banks in Ghana
The different commercial banks offer services that are almost similar but they have various special offers and services that are unique to the different banks. Below are the functions that are universal to all the commercial banks in Ghana;
- They help in safe keeping of money for individuals who deposit funds in their accounts
- They offer lending services to their different customers. The lending might be in cash or in documentation form( for example letters of credit, or guarantees)
- They trade forex
- They buy and sell securities
- They clear the cheques for their clients
- They offer special services like money transfer.
- They also aid in payment of bills. The services include paying water bills and phone bills.
- They sometimes act as trustees for some individuals.
After finding out the functions of commercial banks in Ghana, the next thing you have to answer is, how many commercial banks in Ghana are registered and recognized.
Commercial bank branches in Ghana
The commercial banks in Ghana boast of different branches across the country. These branches are created for several reasons, some of them being;
- The banking industry is decentralized.
- The banks aim to attract more customers from the regions they set up their branches, for example, banks in Accra Ghana may not help residents who live in Kumasi, so the banks will have to establish a branch in Kumasi if they are to attract more customers from the region.
- In some instances, they open branches to help cope with increased demand for the services they offer.
List of commercial banks in Ghana and their interest rates
The list of banks in Ghana 2018 comprises of a number of commercial banks. The list also includes the new banks in Ghana 2018 since the number of commercial banks in Ghana has continued to increase from the 1980’s where there were only three commercial banks. Now, there are more than 20 registered commercial banks.
Here is a list of commercial banks in Ghana and their interest rates 2018:
- Agricultural Development Bank – this bank was established back in 1965. Agricultural Development Bank is one of the banks that can be said to belong to the Ghanaian government. The government holds majority shareholding standing at 52%. The bank operates more than 78 branches around the country and has an interest rate of 27.60%.
- Barclays Bank of Ghana – this is the second largest and one of the oldest operational banks in Ghana. Barclays Bank has been in existence in the country for more than 100 years and boasts a large number of branches all over the country. The interest rate at the bank stands at 21.55%.
- CAL bank – this is a commercial bank based in Ghana and was started in the year 1990. Over the short period of its operation, CAL bank has been dubbed the most invitational bank in the country. The interest rates of the bank stand at 28.50%
- Fidelity bank – this bank is one of the most recent banks. Fidelity bank was founded in the year 2006 and it is owned by foreign investors and also Ghanaian investors. One of the local investors is the SSNIT. The interest rate of the bank stands at 30.50%
- The Ghana Commercial Bank – this is the largest of the indigenous banks in Ghana. GCB boasts of having the largest network as compared to all the banks in Ghana due to its wide range of branches and ATMs. The interest rate at the bank stands at 25.05%
- International commercial bank in Ghana – this is one of the international commercial bank in Ghana. ICB Ghana is a subsidiary of the ICB banking group that is based in Switzerland. The interest rate stands at 22.95%
- National Investment bank – this bank acts as both a commercial and a development bank. The National Investment Bank's interest rate at the bank stands at 27.33%.
- Prudential bank – this is a commercial bank based in Ghana that can trace its roots to the year 1993 when it was started. Prudential Bank Limited has since gone on to improve gradually by branching to the different parts of the country. The bank has its interest rate at 27.50%
- Energy bank Ghana - this is a pretty young commercial bank in Ghana. Energy Bank Ghana was founded in the year 2011 and as of today, the interest rate of the bank stands at 24.88%
- Standard Chartered Bank Ghana – this bank is a subsidiary of the greater Standard Chartered PLC that is based in the United Kingdom. It is one of the pioneers of the commercial banks as it has been operational for more than 100 years having started operations way back in 1896. The interest rate for the Ghanaian bank branches stands at 23.56%.
- The Stanbic Bank Ghana – this bank has maintained the status as one of the top commercial banks in Ghana when it comes to assets. At Stanbic bank, the interest rate of the Ghanaian branch stands at 28.50%.
- The bank of Africa (BOA) – this is one of the commercial banks in Ghana that offers several services to their customers including corporate banking and Small and Medium Enterprises banking. The interest rate at the BOA stands at 27.15%.
- Bank of Baroda Ghana – the bank of Baroda Ghana branch is a subsidiary of the Indian bank. The Bank of Baroda has a reputation of being one of the largest banks in India and it was introduced to the Ghanaian market in the year 2008. The interest rate of this bank stands at 15.16%.
- SG-SSB Limited – this is one of the banks that are considered as the top banks in Accra Ghana . This is because of its diversity and large customer base as it has several branches throughout the country. Societe Generale Ghana interest rate offered at the bank stands at 22.45%
- The Guaranty Trust bank – this bank commenced its activities in the Ghanaian market in the year 1991. GTBank is also one of the few highly rated banks in Ghana with a triple A rating. The interest rate at the bank stands at 26.75%.
- Banque Sahélo-Saharienne pour l'Investissement et le Commerce – this is a commercial bank in Ghana that has its services spread to several nations that share the Sahara desert. The interest rate of BSIC (GH) LTD stands at 33.70%
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