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Zidura Ntengo Undigwere
Zidura Ntengo Undigwere
8 years ago

The spread between what we pay when we borrow from the bank and what the banks pay us when we deposit our money is unjustified. And acceptable only in a country, of docile people, like ours. And the banks know this all too well.
If I had, say, K10 million, in a term/business account, a year’s interest would not even be enough for my family to live on for two months.
That’s highway robbery. Wonder why some people keep their money overseas? Therein lies part of the answer.

Charombanthu
Charombanthu
8 years ago

There are certain parameters or determinants over which banks have no or little control except the RBM. Such high interest rates are largely, but not entirely, caused by the high RBM policy lending rate, the high regulatory liquidity reserve ratio (LRR), the high supervisory fees, the Treasury Bill Rates as well as the government bond rates, all of which are factored into the calculation of individual banks’ base lending rates. The only factors over which banks could have control over are such items as operating costs, the cost of funds they have on their balance sheets, the return on shareholders… Read more »

wa ku Mitchesi kujaaaaa!!!!
wa ku Mitchesi kujaaaaa!!!!
8 years ago
Reply to  Charombanthu

“…parameters or determinants…”, chani chani, inu apa.
People are asking for fairness, and are tired of kuponderezedwa ngati nyerere (being thwarted every which way financially by the oligarchs, these banks). Are we the worst offenders, in the world, when it comes to paying back the loans?
Perhaps the banks should do a better job of screening the people applying for the loans, in the first place.

Bololo
Bololo
8 years ago

(9) Kalunga Kaluja. RBM has a section under bank supervision that look into that. Write to them or go there for more information. A clue though make sure you didn’t sign for that arrangement otherwise the contractual agreement would be legally binding in absence of national laws against it.

Mapwevupwevu
Mapwevupwevu
8 years ago

Stupid Malawians you are not commenting on this insightful article! Koma akanati wina wamenyedwa kuzinziri ndiye 482 comments!

Mxiiii!

mbuyuni
mbuyuni
8 years ago

Ife have resorted bank ya mmudzi where our interest rate is at 20% and we share the interets at the end of the year.I agree to someone suggesting giving this country to a Mangochi business man to run this country, may be due to business success some guys from this district are registering.

Edward
8 years ago

I agree with you Henry Kachaje. I feel the government can not deliberately intervene because it has interest in the huge profits that banks are making. Huge profits for banks means huge corporate tax that these banks will remit to MRA, government in this case.

drakes
drakes
8 years ago

Banks in Malawi are dirty I would urge Malawian not to save in Banks no apology. Would rather save with Unit Trusts,buy shares get your money @ stock xchange to grow it. Those who are seriously looking at long term savings check with Old Mutual they will advise you on which product you can save your money with.Dont waste your time saving with all banks in Malawi they are useless.

Tionane
Tionane
8 years ago

I suggest a regulation that states you cannot charge interest more that twice your offer, so if the Banks are offering 12% to depositors, then they should not charge more than 24% to borrowers.

hastings
hastings
8 years ago

thanks Kachaje, the banks are good at promoting fixed deposits, Call accounts etc to their costomers, but the Money they gain out of that is too small as compared to the interest a fellow poor malawian pay back where get the loan from the same bank With smilar amount of Money. i will give an example on that one, if you borrow K2m from the bank, the interest is around 40%, but if you open a cll account or fixed account With the same amount of Money to the same bank, you get an interest of 7-12%, is this fair?… Read more »

koma kumaneko
koma kumaneko
8 years ago

Kachanje mungovutika kunena, which govt can take good advices? Malawians will cry, die and burried. What you will get from the govt as a reply is rude response from their spokespersons. Zisiyeni atiombole ndi mulungu. I can see fuel shortage is imminent.

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