Republic Bank: Lower Interest Rates on Savings Benefits Customers
Managing Director and CEO of Republic Bank Barbados Limited, Ian De Souza, says the lowering of interest rates on savings by commercial banks has been beneficial to customers, as his bank has been able to reduce the rates on mortgages and other loan services.
He was speaking following the groundbreaking ceremony for the company’s new Warrens headquarters.
Mr De Souza said, “as you would have seen in our mortgage rate offering, because we were able to lower our savings rate, we were also able to reduce our mortgage lending rates. We had a campaign in June 2016, where we introduced an interest rate of 4.5 per cent on our mortgages. We went into that campaign looking for $35 M in new mortgage business, but we in fact got 117 mortgages that were valued at $42 M.”
Meanwhile…CEO of the City of Bridgetown Cooperative Credit Union- Steve Belle says Barbadians need not despair in light of the falling interest rates on savings, as they have financial alternatives such as credit unions. Mr Belle says that move will only benefit the Banks.