BANKS UPBEAT OVER A STABLE ECONOMY

Commercial banks are optimistic that the current buoyant economy would be sustained based on stable interest maintained in the last three years.

For a long time up to 2003, Kenya had high interest rates, both in nominal and real terms mainly as a result of insatiable demand for credit from the government, among other factors.

However, the increased revenue collection by Kenya Revenue Authority has diminished Government’s borrowing through Treasury bills and bonds.

Equatorial Commercial Bank senior manager Rizwan Dada yesterday said the unpredictable interest rates in the past were detrimental to the economy.

“Over the last couple of years the interest rate has been stable helping customers as well as banks plan in advance,” he spoke after the bank opened Sameer Industrial Park branch, which he will head. The new branch, along Mombasa road, will serve Nairobi’s Industrial Area.

“This being the industrial centre of Kenya, the branch will save our customers time of going to our other branches in town or Westlands,” Mr Dada said.

With the additional branch Equatorial now has four branches in Nairobi and one in Mombasa.

Benefit scheme

Retirements Benefits Authority recently registered Equatorial as a custodian of retirement benefits schemes funds.

With the custodial licence, the bank joined a list of commercial banks that are allowed safekeeping of pension and providence schemes’ funds.

Mr Dada said the custodial licence was in line with the bank’s pursuit to offer all financial services.

“The idea is to have full financial service from loans to more dynamic service like Internet banking and now custodial licence all which will put Equatorial right up there with other leading financial institutions,” he told reporters.


SOURCE: DAILY NATION