Banks hike lending rates

IN reaction to the 0,50 per cent increase in the Bank Rate as announced by the Bank of Namibia on Thursday, commercial banks have in turn increased their major lending rates accordingly.

Bank Windhoek’s prime lending rates went up by 50 basis points from 11,75 per cent to 12,25 per cent; while the Mortgage Loan Rate increased by 25 basis points from 12 per cent to 12,25 per cent. Standard Bank Namibia Managing Director Theo Mberirua said “generally most” of the rates would go up by 0,5 per cent save for the Home Loan rate which would be increased by 0,25 per cent.He said Standard Bank would make an announcement today on increases for specific rates.First National Bank (FNB) Namibia made a similar announcement.The bank’s prime rate went up from 11,75 per cent to 12,25 per cent, while the Home Loan Rate was upped by 0,25 per cent to 12,25 per cent.Said the Chief Executive Officer of FNB Namibia, Leonard Haynes: “Although the announcement caught many by surprise, it was not totally unexpected in view of the unsustainable growth in national household debt, high oil prices and depreciation of currency.”But more encouraging would be the increase in the investment rates, which will hopefully lead to an increase in national savings.”The bank (FNB) will thus review its investment rates as a matter of urgency to support savings.”Standard Bank Namibia Managing Director Theo Mberirua said “generally most” of the rates would go up by 0,5 per cent save for the Home Loan rate which would be increased by 0,25 per cent.He said Standard Bank would make an announcement today on increases for specific rates.First National Bank (FNB) Namibia made a similar announcement.The bank’s prime rate went up from 11,75 per cent to 12,25 per cent, while the Home Loan Rate was upped by 0,25 per cent to 12,25 per cent.Said the Chief Executive Officer of FNB Namibia, Leonard Haynes: “Although the announcement caught many by surprise, it was not totally unexpected in view of the unsustainable growth in national household debt, high oil prices and depreciation of currency.”But more encouraging would be the increase in the investment rates, which will hopefully lead to an increase in national savings.”The bank (FNB) will thus review its investment rates as a matter of urgency to support savings.”