Deposit rate down but lending rate unchanged

dineshfernando · 1 Deposit rate down but lending rate unchanged Mon Apr 07, 2014 12:44 am

dineshfernando

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The companies are not going to benefit from reduction in the interest rates. The Central Bank put a cap on Deposit rates but not on lending rates.

Still banks charge over 20% as overdraft interest and broker firms charge over 23% as interests for margin loans.

The purpose is lost. Only lending institutions are benefited out of this. There should be a cap on the lending rate.

worthiness · 2 Re: Deposit rate down but lending rate unchanged Mon Apr 07, 2014 8:03 pm

worthiness

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I asked two leading state banks & private banks. They said no circular with instruction have been yet received of caps for new deposits. They still apply the low rates on fixed deposits being placed. May be we need to look at original issuance from central bank in detail rather looking at media interpretation.

bandulawee · 3 Deposit Rates Fixed Tue Apr 15, 2014 8:51 pm

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Central Bank has fixed the deposit rates for Finance Companies to get the deposits to Commercial Banks so that Government can borrow at low rates. Depositors have no option but to deposit their funds in low return treasury bills. Deposit rate is much lower than real inflation not published figures and there will be an erosion of the deposit. Other option for savers is to invest in the stock market, buy property or keep the money buried in home safes and use it for purchasing of assets rather than being hoodwinked by the CB.

dhanurrox · 4 Re: Deposit rate down but lending rate unchanged Tue Apr 15, 2014 9:08 pm

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Considering inflation now we are having negative interest rates. Very Happy

SHARK aka TAH · 5 Re: Deposit rate down but lending rate unchanged Tue Apr 15, 2014 11:54 pm

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China gold demand to rise, World Gold Council says
adabiz Top News April 15th, 2014 0 Comments 11 views
China’s demand for gold is set to rise by about 20% over the next few years, the World Gold Council has estimated, as the population becomes more wealthy.

The council estimates private sector demand for gold in China will rise to at least 1,350 tonnes by 2017.

Chinese customers bought 1,132 tonnes of gold last year, in jewellery as well as gold bars and coins for investment.

The forecast comes as China becomes the world’s largest gold-consuming nation since last year, overtaking India.

The World Gold Council says China is at the “centre of the global gold eco-system”, as rapid urbanisation creates a rising middle class.

Albert Cheng, from the World Gold Council, said: “The cultural affinity for gold runs deep in China and when this is combined with an increasingly affluent population and a supportive government, there is significant room for the market to grow even further.

“Whilst China faces important challenges as it seeks to sustain economic growth and liberalise its financial system, growth in personal incomes and the public’s pool of savings should support a medium term increase in the demand for gold, in both jewellery and investment.”

According to the council, consumers bought a record amount of gold last year, with Asia’s economic heavyweights China and India in the top two spots.

In Western markets demand for the precious metal remained strong, particularly in the US, where people bought a lot of gold jewellery as well as gold bars and coins.

BBC