Stanbic Bank is reducing its prime lending rate by 1% from 22% to 21% effective 1 December, a statement released by the lender said.
This follows last week’s reduction in the Central Bank Rate to 13%, the fourth consecutive rate cut this year. It’s also Stanbic’s fourth interest rate cut this year, a sign that the bank – Uganda’s largest by assets – moves in tandem with the central bank.
“Our decision to reduce the rate is based on the prevailing economic conditions which are improving and our policy of maintaining the transparency of our pricing to our customers, where we match any movements of the Central Bank Rate with adjustments to our Prime Lending Rate,” Stanbic’s chief executive, Patrick Mweheire, said.
The Uganda Securities Exchange-listed bank recently signed a $55 million loan facility at LIBOR plus 2.75% in Dubai to be lent in Uganda. It said the loan would be used for “general corporate purposes,” including loans to the energy, agriculture, manufacturing, trade, telecommunications, and infrastructure sectors, among others.
The average weighted prime lending rate of commercial banks was 24.29% in August, according to Bank of Uganda, a slight increase from July’s 23.90%.