Three more banks have announced base lending rate cuts this week in reaction to the reduction in the Liquidity Reserve Requirement (LRR) by the Reserve Bank of Malawi (RBM) from 15.5 percent to 7.5 percent.
National Bank, Standard Bank Malawi Limited as well as First Merchant Bank (FMB) reduced their own base lending rates.
Standard Bank led the way by slashing the rate by six percentage points from 38 to 32 percent, while NBM last week announced that it has revised its lending rate by seven percentage points to 32 per cent from 39 percent while FMB on Thursday also slashed its base lending rate to 33 percent.
In an interview yesterday, New Finance Bank (NFB) deputy chief executive officer Gilford Kadzakumanja said his bank wants to pass on the benefits that will come with the reduced LRR to its customers.
RBM spokesperson Mbane Ngwira last week said the recent revision of bank lending rates following LRR cut is a positive development in the banking sector.