The charges and rates – covering 25 commercial banks – are published by Bank of Uganda to “promote transparency and enhance competition in the provision of banking services.”
They include interest rates, minimum balances on accounts, bank charges on accounts, loan related charges, and charges and fees for ATM transactions.
Two banks cut their lending rates – which have drawn criticism for being too high and therefore holding back borrowing and investment by the private sector – following the central bank’s cut in interest rates in June. Stanbic Bank and NC bank cut prime lending rates by 1%, to 23% for Stanbic and 24% for NC. Stanbic’s lower rate became effective on 1 August, while NC bank’s went into effect on 25 July.
The central bank again lowered interest rates by 1% on 8 August, citing as one of its reasons the need to stimulate borrowing by the private sector. Even though commercial banks are not obligated to follow the decision and cut their lending rates, it puts pressure on them by weakening one of their justifications for high rates.
Download: Commercial bank interest rates and bank charges, 1 July 2016 (pdf).
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Commercial bank interest rates and charges as at 01 January 2017
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