Banks scrap around for deposits

SOURCE: BANK OF BOTSWANA
SOURCE: BANK OF BOTSWANA

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
Happy Independence Day!

Independence Day holds immense significance for Batswana as a whole. It offers a moment for reflection and celebration of the country's achievements, while also prompting introspection.We must honestly assess whether the number of years of independence aligns with the progress we have made. While there is certainly much to celebrate, there are also pressing issues that require the attention of relevant stakeholders. Many Batswana are facing...

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