Page 2 - Bank Interest Rate
China hits 'liquidity trap' as low lending rates fail to spur bank loans
China's Central bank data showed a sharp slowdown in aggregate financing, a broad measure of credit, in July, as new loans and corporate bond issuance weakened
 "China hits 'liquidity trap' as low lending rates fail to spur bank loans")
FRAs back in vogue, help insurers in fixed rate of interest for payouts
Forward Rate Agreements enables insurers lock in a fixed rate of interest rate for a future pay out
 "FRAs back in vogue, help insurers in fixed rate of interest for payouts")
SBI, ICICI Bank up interest rates on certain foreign currency bank deposits
According to SBI's website, the interest rate on US dollar category deposits with maturities up to 2 and 3 years are up by 85 basis points to 2.85 per cent and 3 per cent
 "SBI, ICICI Bank up interest rates on certain foreign currency bank deposits")
Negative interest rate and financial repression
Investments drive growth but how will investors get funds if the savings pile shrinks with no incentive to save in a negative interest rate regime?
Libor shift: The bank plan to move to alternative reference rates explained
On July 8, the Reserve Bank of India asked lenders to switch from Libor to other Alternative Reference Rates by December 31, 2021. Business Standard spoke to Siddharth Purohit, Equity Analyst, SMC Global to comprehend the impact of this move on the way banks deal in international contracts among others.
 "Libor shift: The bank plan to move to alternative reference rates explained")
Interest margins of banks at 12-yr high; cost of funds fell 50 bps in FY21
Analysts attribute the margin expansion to the wedge between RBI's repo rate and the lending rate in the market
 "Interest margins of banks at 12-yr high; cost of funds fell 50 bps in FY21")
Is it curtains for the interest-waiver issue?
Interest is not being waived and the benefit is extended to all - including those who have not availed of the loan moratorium. So, it will not vitiate the credit culture
 "Is it curtains for the interest-waiver issue?")
Strategies to protect your income in a scenario of falling interest rates
Several products offer better rates, especially for seniors; that said, never try to optimise returns when you need money in the short term
 "Strategies to protect your income in a scenario of falling interest rates")
Interest rates charged by banks capped at 9.25% under MSME package
Interest rate ceiling for NBFCs loan at 12%; caps are much lower than the normal interest rates charged by these lenders
 "Interest rates charged by banks capped at 9.25% under MSME package")
SBI cuts lending rate by 15 bps, launches scheme for senior citizens
The State Bank of India (SBI) has introduced a special deposit scheme for senior citizens with a higher interest rate
 "SBI cuts lending rate by 15 bps, launches scheme for senior citizens")
Think twice before availing RBI moratorium on your credit card dues
The accumulated dues will be very high, given the high interest cost on credit cards
 "Think twice before availing RBI moratorium on your credit card dues")
Bank of India introduces repo-based interest rate for select loan products
Corporation Bank also announced launch of home loans linked with external benchmark
 "Bank of India introduces repo-based interest rate for select loan products")
Banks may raise rates to battle eroding profits even as RBI stays 'neutral'
An RBI staff study showed every 100 bps increase in borrowing costs lowers the investment rate by as much as 91 bps
 "Banks may raise rates to battle eroding profits even as RBI stays 'neutral'")
