Banks on the spot over high interest rates
08 July 2013, 11:03
Nairobi - A new report shows that Kenya’s large banks are charging the highest interest on loans even as they retain depositors on small payouts, Business Daily reports.
According to the study by Central Bank of Kenya (CBK), the six top banks are squeezing borrowers while using their dominance in the skewed market to pay less for deposits.
The 10th report of CBK’s Monetary Policy Committee shows that the influential financiers enjoy an average interest spread of 15.3 per cent compared to 11 per cent for the small banks, meaning the big lenders are raking in nearly 40 per cent more in profit margins than their smaller competitors.
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