Banks scrap around for deposits


There is an extensive hunt for deposits in the commercial banking industry as banks have run out of loanable funds due to a prolonged period of over-extended lending without a commensurate growth in deposits.

A snap survey of the banks’ deposits rates shows that the liquidity crunch has pushed up the cost of funds for the banks as deposits rates have risen, a development that will further squeeze profit margins in the prevailing low lending rates environment.

In the past six months, deposits rates for smaller depositors have slightly gone up from an average of about 3.75 percent to 4.10 percent for six months fixed deposits. For 12-months fixed deposits have gone up   from 4.15 percent to 4.75 while two-year deposits has gone up from 4,5 percent to five percent. 

Editor's Comment
Keep your mask close

Wearing of masks behind closed doors has been mandatory following the government’s August decision that the public was freed from masking in outdoor spaces.According to a press statement from the ministry, all other remaining COVID-19 protocols such as social distancing in schools and requirements for vaccination or PCR tests at ports of entry have also been relaxed.Statistics still show that hundreds still die daily due to the pandemic around...

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