There are concerns regarding the spread between rates of deposits and lending. What is the bank dealing with the matter?
It is important to understand that various factors drive deposit and lending rates in various countries. Some of these include the cost of funds, varying Treasury Bill (T-Bill) rates, differing credit cultures and legislation, levels of economic growth, political stability and others.
The Tanzania, Standard Chartered Bank offers competitive rates on deposits and loans. We have various loan products for different sectors — individuals, small businesses, small and medium enterprises and big companies. Our pricing takes into consideration factors such as the cost of funds and T-Bill rates as well as the credit culture.
Our bank is a member of the Tanzania Bankers Association that is working on the Credit Reference Bureau to improve the credit risk assessment in the country. Creditworthy clients would, therefore, be able to get cheaper loans.
The Standard Chartered Bank is, therefore, committed to enhancing the economic development of Tanzania and the other countries in which it operates. We will thus continue to offer competitive rates on deposits and loans.
What do you foresee credit-deposit ratios at the Standard Chartered Bank?
The Standard Chartered Bank in Tanzania remains well capitalised and our loan-to-deposit ratio remains well below the statutory maximum. Our policy is to maintain adequate liquidity at all times in all geographical regions and countries, and for all currencies to meet obligations, repay depositors, fulfil commitments to lend and meet other commitments.
What was your experience on the global economic meltdown?
The Standard Chartered has always maintained strong discipline and a clear focus on the basics of banking: in maintaining adequate capital and liquidity and risk management. Before, during and after the Western financial crisis we remained highly liquid. Liquidity is one of the pillars upon which we manage the group as a whole, and our current asset to deposit ratio remains strong at 78.1 per cent.
What are your credit and deposit growth targets this financial year?
Our target is to enhance our performance and significantly increase our loans and our deposits to surpass last year’s growth rates. Locally, our loans book grew by about 30 per cent year-on-year (YoY) by end of the last year. This can be attributed to our innovation and services as well as having a focused approach to cater for various segments of customers. We have also been keen to focus on the Afro-Sino Trade corridor, which we ably facilitate given our strong presence in Asia and Africa.
On the other hand, our deposits book grew by over 20 per cent YoY by the end of last. This was result of the introduction of a number of competitive products and services into the market as well as running a number of campaigns.
Since the bank’s aim is to have a robust loans book, it appears that you may be prompted to raise funds to that effect. What are your comments on it?
Our bank is committed to enhancing the economic growth of the countries in which we operate. Ensuring adequate availability of funds through loans in a fast and efficient manner contributes to expediting development.
In Tanzania, the bank has continued to ensure that the availability of funds to various sectors through our customers is fast and smooth. We have also taken various measures to ensure a continuous flow. Last year, it issued a Sh25 billion bond (approximately $16.5 million).
One of the key reasons for the issuance of the bond was to facilitate long-term lending to our customers. We have, therefore, continued to offer loans and are well positioned to continue doing so.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment