THE overall lending rates have been eased to an average of 16.94 per cent from 17.3 per cent of the same period in 2018.
The decrease in interest rates in lending poses hope and great opportunities to lenders to boost their businesses. Moreover, the one-year lending rate fell to 16.90 government financing needs.
Interest rates charged on loans and offered to deposits by banks were also lower in November 2019 than in the similar month of 2018.
Lending rates declined on account of measures taken to reduce risk premium coupled with sustained accommodative monetary policy stance and streamlined fiscal.
The decrease in deposits rates reflects adequate liquidity in the banking system Both auctions were oversubscribed recording total bids worth 402.1bn/- , out of which bids worth 192.0bn/- were successful.
Consequently, the overall weighted average yield decreased to 5.98 per cent in November 2019, from 6.40 per cent in the preceding month.
In November 2018, the interest rates offered by banks on deposits and charged on loans were lower.
Reflecting the impact of accommodative monetary policy and measures taken to improve credit information of borrowers using credit reference database, overall lending rate declined to an average of 16.95 per cent in November 2018 from 17.63 per cent in the corresponding month in 2017 and interest rate remained low and stable at an average of 2.39 per cent compared with 2.74 per cent in October 2018.
