How do banks change credit and deposit rates?


The "Absolut Bank" rates on consumer loans - and now they are 53-60% - have not changed for several months. This is despite the decline in the refinancing rate by 1.5%. To Euroradio’s question on whether the clients are frightened by such rates, the bank answered with another question:

"What do you think, how will people react?".

A female consultant from the "Alfa-Bank" pleases us by the stable interest rates.

"Our rates have not changed: they stayed 70%, as before. It’s quite a popular credit. Today, all banks offer approximately the same rate."

The most expensive consumer credit here is 75% per annum.

If we take a credit for Br 25 million for 2 years in this bank, we will have to give nearly twice as much at the end of the term. "Alfa-Bank" used  the refinance rate reduction of 1.5% to the maximum: the rate on one of the deposits fell sharply by 6 percentage points!

"The monthly rate makes 35% now, 37% - per three months, while it used to be 41 and 43% correspondingly", - they say in the bank. 

The situation with loans-deposits in most commercial banks looks the same: lending rates fell to 5%, and deposits fell by 2.3%. Despite the fact that the refinancing rate has decreased by only 1.5%.

Oddly enough, the "Belarusian National Bank"  has reduced interest rates on loans to almost 30%!

"Lending rates have declined from 16 to 29%, and deposits - by 1.5%. For example, the deposit "What is needed": it used to be 32% and now it’s 30.5%. "

Meanwhile, the "BelVEB" used the refinancing rate changes in its own way. Here, interest rates on loans ... have grown.

"On March 4, they have increased" - says the girl in the contact center of the bank. - "Previously, the rate was about 42%, and now it is about 45%". Still, the credit department provided us more information and calmed us down:

"They will fall anyway...".

So, I bluntly ask whether it is a publicity stunt - first increase and then decrease the rates and advertise it. The bank admits that it is.

Here's how to be on the pulse.