Maravi

Stannic cuts base lending rates

Stannic cuts base lending rates
By Gift Chanda
Tue 27 Mar. 2012, 12:59 CAT

STANBIC Bank Zambia has cut its base lending rates to 11 per cent effective April 15 this year, the company announced yesterday. The move would make the bank with the lowest lending rates in the country.

It said the reduction in the rates from 16 per cent to 11 per cent was in support of the steps taken by both the Bank of Zambia and Ministry of Finance to reduce statutory reserves, cash reserves and the tax rates for banks.

Stanbic, a member of South Africa's Standard Bank Group Ltd, further announced that it would meet the new minimum capital requirement for commercial banks before the June 30, 2012 first deadline.

The government has raised the minimum capital requirement for commercial banks from the current K12 billion to K104 billion for local commercial banks and K520 billion for foreign banks.

The measure to raise minimum capital requirement for banks is intended to mobilise additional resources to enable banks participate more effectively in growing the economy by increasing credit available to the private sector.

The increase in the minimum capital requirement would further, make the banks more resilient to economic shocks.

"As a bank, we are adapting our business and becoming more efficient and also growing our volumes to cope with the much lower base reference rates for kwacha lending," stated managing director Dennis Kennedy.

Kennedy added that Stanbic Bank was a committed long-term investor into Zambia and had taken this positive step as a clear demonstration of its long-term commitment to support the growth initiatives of the Zambian government.

Standard Bank Group Ltd reported a 21 per cent rise in its 2011 profit, helped by a drop in bad debts and its refocus on fast-growing African markets.

Net income climbed to 13.2 billion rand (US$1.7 billion) from 10.8 billion rand a year earlier.

Africa's top lender by assets has been expanding in sub-Saharan countries such as Nigeria, as part of a retooled strategy that led it to exit Russia and Argentina over the last year.

Labels: LENDING RATES, STANBIC

posted by MrK @ 8:02 PM