Oct. 15 (Bloomberg) -- Namibia’s four commercial banks said they would meet an order issued last year by the Bank of Namibia to narrow the spread between the central bank’s repo rate and the commercial banks’ prime lending rate.
The spread will be reduced to 3.75 percentage points from 4.75 points by the end of October, Ian Leyenaar, president of the Bankers Association of Namibia and chief executive of FNB Namibia Holdings Ltd., said in an e-mailed statement today. The other three banks are Standard Bank Namibia, Nedbank Namibia and Bank Windhoek.
The central bank will make its next rate decision on Oct. 20 and the last one for the year on Dec. 15. The repo rate is currently 7 percent, while commercial banks’ prime interest rate is about 11.13 percent.
To contact the reporter on this story: Chamwe Kaira in Windhoek via Johannesburg at firstname.lastname@example.org.
To contact the editor responsible for this story: Antony Sguazzin in Johannesburg at email@example.com.