Malawi loan seekers suffer higher interest rates, says Standard Bank

Standard Bank Group has revealed in its most recent release that higher interest rates and tough economic conditions in Malawi are affecting its operations in that small south-eastern African country, especially desire to offer loans to customers.

Standard Bank Luchenza

Standard Bank Luchenza

Standa Bank  function

Standa Bank function

“Tough economic conditions and concerns on the high interest rates continue to impact the group’s appetite to lending; this has in turn negatively impacted the overall growth of the loan book,” read a part of the statement.

Standard Bank, which is also listed on the Malawi Stock Exchange, added that it expects Malawi to embark on an expansionary policy framework in 2015.

The bank is one of South Africa’s largest financial services groups. It operates in 32 countries around the world, including 19 in Africa.

Economists in Malawi say the country is likely to face a prolonged financial downtime in 2015 unless the government can regain the confidence of donors, who are still withholding 40 percent of budgetary support due to the corruption scandal known as “Cashgate”.

More than $30 million were looted from government coffers in the scandal, and several people, including government officials, were arrested.

The withholding of donor aid has forced Malawi to pass what is known as the Zero Aid national budget for the 2014-2015 fiscal year.–Ventures

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12 thoughts on “Malawi loan seekers suffer higher interest rates, says Standard Bank”

  1. mtibu says:

    that’s wy we promote village banks

  2. ndunde says:

    The base interest rate is set by the central bank which is at 38% this means that there is no any lending institution which is offering less than.

    1. Bokonomiks says:

      If you do not know how interest rates are set up in Malawi just shut your sewage hole. Monetary policy rate set by the central bank is at 25%, banks decide on their own based on the risks they face to set their own lending rates

  3. SAPITWA says:

    Mbava zimenezi za STD BANK .

  4. Lizwelithini says:

    Zoona kukongola K250.000 ku FINCA kubweza K400.000 pa 12 months, what percentage is that? Kuba yeti? FOTSEKI!

  5. Okonda Amayi says:

    Standard Bank full of crooks, kupanda kunyema NO loan granted, corrupt staff starting from the head of credit going down eish mbava. Malawi is the poorest country hence the highest interest in the entire universe. Alomwe tsitsani bank interrst rates, Bingu was at 18% koma Peter 50% eish

    1. zotu says:

      Who is the Head of Credit? Name and shame.

  6. Okonda Amayi says:

    Standard Bank full of crooks, kupanga kunyema NO loan granted, corrupt staff starting from the head of credit going down eish mbava. Malawi is the poorest country hence the highest interest in the entire universe. Alomwe tsitsani bank interrst rates, Bingu was at 18% koma Peter 50% eish

  7. mtichimwitsa says:

    Mbava za katapila izi anthu akudziwani mxiiiii

  8. Mwiza says:

    The interest rates look unreal

  9. Concerned citizen says:

    standard bank imatipezelera ife a Malawi.corporate thieves

  10. INEYO says:

    To Say The Truth, Std Bank Is A Day Light Thief. Osatinamizapo Apa.

Comments are closed.