KARACHI: The weighted average banking spread during December 2020 declined by 13bps, as compared to November. Overall banking spread stood at 4.3 percent in December compared to 4.5 percent in the preceding month.
Decline in banking spread was led by 16bps fall in lending rates, which stood at 8 percent during the month. Meanwhile, deposit rates declined by 3bps to 3.6 percent during the month under review. On a cumulative basis, banking spread declined by 173bps during CY20.
Additionally, fresh lending rates stood at 8.1 percent during December, rising by 2bps on month-on-month basis, while fresh deposit rates increased by 64bps on MoM to 3.3 percent. Consequently, fresh banking spread during December stood at 4.8 percent — down 62bps on month-on-month basis.
Copyright Business Recorder, 2021