14 °c
London
Friday, April 23, 2021
No Result
View All Result
FurtherAsia FurtherArabia FurtherBrazil FurtherRussia
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

Mozambican Finance Minister urges banks to cut interest rates

FurtherAfrica by FurtherAfrica
November 28, 2017
in Africa, Banking, Economy, Finance, Mozambique
Reading Time: 2 mins read
1
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

Mozambican Finance Minister Adriano Maleiane on Monday urged the country’s commercial banks to cut their interest rates, which are throttling Mozambican businesses.

Speaking at the launch of the latest research on the country’s banking sector, organised by the consultancy company KPMG, and the Mozambican Association of Banks (AMB), Maleiane said there is “a lack of clarity in defining the price of money”, and he urged the banks to publish the rules for establishing interest rates for the various categories of loans that they grant.

Despite gradual reductions in the benchmark interest rates charged by the Bank of Mozambique, the rates charged by the commercial banks remain extremely high, at around 30 per cent. The annual inflation rate has now fallen to below ten per cent, but this too has had no impact on the banks as they pile up huge profits.

BCI has become the largest commercial bank in the country, overtaking the MillenniumBIM

“It seems we have a lot of work to do for transparency and for fixing interest rates”, said Maleiane. “Apparently, those who look at our interest rates may understand that there is no connection between the costs of funding, inflation and risk. It seems that these things are rather dissociated. So I’m challenging the financial system to bring me a reference rate. I’d like to see a reference rate for 90 days, 180 days, 360 days. I hope that the sector will explain”.

Outside the country, the impression was that somehow the authorities fix the interest rates – but this was untrue, Maleiane stressed. “You (the banks) are fixing the interest rates, and the argument you present is that it’s the responsibility of the central bank, but the central bank denies that”, he said. “There is an agreement under which you fix the cost of the risk premium. This premium is there, and nobody knows how it moves. It’s important that we, the consumers, can know”.

The performance of the financial sector suffered from the crisis into which the Mozambican economy plunged last year. Data provided at the meeting shows that the credit provided by the banks to the economy fell by 25 per cent between 2016 and 2016, and that the proportion of non-performing loans increased by 66 per cent.

In terms of assets, lending and deposits taken together, the Commercial and Investment Bank (BCI), has become the largest commercial bank in the country, overtaking the Millennium-BIM (International Bank of Mozambique). In third and fourth place are Standard Bank and Barclays-Mozambique. But Millennium-BIM remains the most profitable bank in Mozambique.

Source: AllAfrica

Related

Tags: Adriano MaleianeAMBBanco Comercial e de InvestimentosBank of MozambiqueBarclaysBCIinflationInterest ratesKPMGMillennium BIMMozambican Association of BanksMozambican Finance MinisterMozambiqueStandard Bankモザンビーク莫桑比克
ScanSendShare320Tweet200Share56Pin72Send
Previous Post

Mozambique: Vale & Mitsui sign the project finance for the Nacala Corridor

Next Post

Cahora Bassa will be trade on the Mozambique Stock Exchange

FurtherAfrica

FurtherAfrica

Founded in 2015 FurtherAfrica is an online platform centralising news and content focusing on the development and growth story of the African continent.

Related Posts

Angola

Angola to cut 20% of diamond production

by Staff
April 23, 2021
e-Commerce

Following Twitter choosing Ghana, Amazon opts for South Africa for its first African office

by Staff
April 23, 2021
Africa

Mozambique: ExxonMobil FID likely to come in 2023 – Fitch Solutions

by Rafael Carvalho
April 23, 2021
Rwanda invites African tech startups to apply for the Smart Cities Innovation Programme 2021
Startup

Rwanda invites African tech startups to apply for the Smart Cities Innovation Programme 2021

by TechGist Africa
April 23, 2021
Angola

How Angola is planning to revive its oil industry, jumpstart economy

by The Exchange
April 23, 2021
Next Post
Mozambican power utility pledges to clear its US$50m debt for Cahora Bassa

Cahora Bassa will be trade on the Mozambique Stock Exchange

Bank of Angola provides US$500M for auctions in August

Angola Central bank foreign currency sale drops 43%

Emirates Phoenix Group US$205M expansion to target Mozambique, Benin & Ivory Coast

Emirates Phoenix Group US$205M expansion to target Mozambique, Benin & Ivory Coast

Comments 1

  1. Avatar ruca says:
    3 years ago

    Hi, just one note…
    Biggest does not mean best…
    https://www.gfmag.com/magazine/may-2017/worlds-best-banks-2017-africa
    http://clubofmozambique.com/news/millennium-bim-voted-best-bank-of-mozambique-2017/

    Reply

Leave a Reply Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

2021 AFSIC
2022 Indaba Mining

FurtherAfrica Partners

The Exchange Club of Mozambique Taarifa Rwanda
CrudeMix Africa TechGist Africa Farmers Review Africa
Botswana unplugged Financial Insights Zambia Africa Oil & Power
Harambee Africa Novafrica  

Subscribe to FurtherAfrica

Enter your email address to receive notifications of new articles on your email.

Join 73,051 other subscribers.

FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About

© 2021 FurtherMarkets

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?