Increased competitions among banks narrowed the overall time lending rates to 15.4 per cent in the period ending February, this year, compared to 15.8 per cent recorded in the corresponding period in 2012.
Bank of Tanzania (BoT)
However, lending rates for the long term loans exceeding five years increased slightly by 0.59 per cent to 14.79 per cent in the period under review, because of deteriorating credit to the private sector. Annual growth of credit to the private sector was 17.9 per cent, compared with 24.3 per cent recorded in the corresponding period a year before.
Similarly, lending rates for long term loans of between three to five years slowed to 15.4 per cent compared to 16.7 per cent recorded in the year earlier. The Bank of Tanzania (BoT) monthly economic review shows that the margin between short-term lending and one-year time deposit rates narrowed to 3.6 per cent in the period under review compared to 4.2 per cent of the corresponding period last year.
Meanwhile, the overall time deposit rate increased slightly to 8.70 per cent from 7.09 per cent recorded in February 2012. The 24-month deposit rate increased to 9.2 per cent compared to 6.4 per cent of the previous session. The one year deposit rate increased to 10.2 per cent compared to 9.6 per cent recorded in the corresponding period a year before.
Also the savings deposit rate recorded a slight increase to 2.8 per cent in the period under review, compared to 2.9 per cent of the previous year.
Source Tanzania Daily News
