Stanbic reduces lending rate to 15%
STANBIC Bank has reduced its lending rate to 15% from 18%, the Bank of Uganda governor, Tumusiime Mutebile, has said.
By Bwogi Buyera
in Kabale
STANBIC Bank has reduced its lending rate to 15% from 18%, the Bank of Uganda governor, Tumusiime Mutebile, has said.
The 15% prime lending rate is the lowest in the country. It follows the reduction by the central bank of the bank rate, a key determinant of interest rates that are as high as 28%.
A bank rate is the rate of interest which a central bank charges on the loans and advances that it extends to commercial banks and other financial intermediaries. “Stanbic Bank’s move is commendable and will provoke others to follow.
“Low interest rates will reduce the cost of doing business, improved productivity and lower prices,†he said at the opening of the bank’s refurbished and expanded branch in Kabale town recently.
With a rapidly growing population, Kabale is one of the most productive and dynamic districts in Uganda.
Phillip Odera, the bank’s managing director, said the expansion and modernisation of the branch was inspired by a need to offer quality financial services in the area.
“Over the last few years, we have seen our business in Kabale grow. This inspired us to invest more money to expand the branch,†he said.
Mutebile hailed Stanbic for the recent introduction of the Mobile Money Transfer service.
He noted that it would accelerate the distribution of modern financial services to the rural areas.
He cautioned banks to constantly monitor and manage the risks that may come with the innovative products like the mobile money transfer service.
Stanbic recently launched the ContractSave and Bonus Investment accounts.
in Kabale
STANBIC Bank has reduced its lending rate to 15% from 18%, the Bank of Uganda governor, Tumusiime Mutebile, has said.
The 15% prime lending rate is the lowest in the country. It follows the reduction by the central bank of the bank rate, a key determinant of interest rates that are as high as 28%.
A bank rate is the rate of interest which a central bank charges on the loans and advances that it extends to commercial banks and other financial intermediaries. “Stanbic Bank’s move is commendable and will provoke others to follow.
“Low interest rates will reduce the cost of doing business, improved productivity and lower prices,†he said at the opening of the bank’s refurbished and expanded branch in Kabale town recently.
With a rapidly growing population, Kabale is one of the most productive and dynamic districts in Uganda.
Phillip Odera, the bank’s managing director, said the expansion and modernisation of the branch was inspired by a need to offer quality financial services in the area.
“Over the last few years, we have seen our business in Kabale grow. This inspired us to invest more money to expand the branch,†he said.
Mutebile hailed Stanbic for the recent introduction of the Mobile Money Transfer service.
He noted that it would accelerate the distribution of modern financial services to the rural areas.
He cautioned banks to constantly monitor and manage the risks that may come with the innovative products like the mobile money transfer service.
Stanbic recently launched the ContractSave and Bonus Investment accounts.