ANZ to reduce interest rates further

ANZ will reduce interest rates further on 29 July 2009.

The reduction in interest rates come about as a result of the Reserve Bank of Fiji's policy for banks to reduce their lending rates to the levels they were as at end December 2008 and for interest spreads to be not more than 4%.

ANZ has also announced that the reduction in interest rates comes together with a raising of the risk preferences that the bank have. The bank has said that it will be more comfortable now with lower risk loans and customers that it would otherwise have been.

Westpac to reduce lending rates later this month

Westpac Banking Corporation Limited will reduce its business index lending rate by 1% and its variable rate on housing loans by 1.5% and its variable rate on investment property loans by 1% on 22 June 2009.

No reduction in deposit rates have been announced by the bank.

The reduction follows a lead taken by ANZ Banking Group Limited to reduce lending rates across the board by 0.5% by 1 June 2009.

These follow a policy directive taken by the Reserve Bank of Fiji in mid April 2009 requiring banks to reduce their weighted average lending rates to the levels they were as at end December 2008 and to cap their interest spreads (i.e. the difference between a bank's weighted average lending rate and it's weighted average cost of funds) to 4% within 3 months from mid April 2009.

ANZ reduces lending rates and not deposit rates

The interest rates published by ANZ Banking Group Limited in Fiji effective 1 June 2009 shows that the bank has started to work on complying with the Reserve Bank of Fiji's recent policy for banks to reduce their weighted average lending rates to the levels they were as at end December 2008 and to cap their interest spreads (i.e. the difference between a bank's weighted average lending rate and it's weighted average cost of funds) to 4% within 3 months from mid April 2009.

The rates published by ANZ Banking Group Limited sees its deposit rates kept at the same levels as they were previously.

However, Colonial National Bank has not reduced both its lending nor deposit rates as seen in the rates that the bank published effective 1 June 2009.

Westpac Banking Corporation Limited is yet to publish its interest rates.

After it does, we will review its rates and comment on it.

Note : For investment advice and portfolio management, pls call our office on (679) 3342719 or email info@gilbert.com.fj.

ANZ reduces variable lending rates

ANZ Banking Group Limited is the first bank to announce a reduction of 0.5% in all its variable rate loans as from 1 June 2009.

The announcement was made by the bank's Fiji General Manager, Robert Bell.

The bank said the reduction was a result of an increase in banking system liquidity due to improvement in export proceeds collections and the reduction in the statutory reserve deposit requirements of commercial banks.

ANZ has also said that its wholesale term deposit rates are to fall as well.

The bank has urged customers facing financial difficulties to contact their ANZ branch or relationship manager to discuss their positions, as soon as possible.

One should be expecting other banks to follow suit in reducing their interest rates after the announcement by ANZ.

No Change to Bank Interest Rates

There have been no changes to interest rates for banks in Fiji, after recent monetary policy decisions taken by the Reserve Bank of Fiji, including reducing the Statutory Reserve Deposit rates of banks from 6% to 5% of their deposit and similar liabilities.

This is evident from the interest rates published by the country's two largest banks, Australia and New Zealand Banking Group Limited and Westpac Banking Corporation in recent days which we have posted on our blog earlier today.

This would mean that interest spreads, the difference between average lending rates and average deposit rates or cost of funds of a bank, would still be high or at least have not changed much.

In recent weeks, the Reserve Bank of Fiji had issued policy directions to banks one of which was to reduce their interest spreads to 4% in three months time.

While retail customers, the ordinary bank customers including Moms and Pops, would have no change to their rates, wholesale customers have the advantage of enjoying higher rates. Wholesale term deposit rates for 1 year terms are still around 8% or 9%, however, there is some downward pressure on them.

For advice on investment or portfolio management, pls call our office on (679) 3342719 or email info@gilbert.com.fj.

Increase in bank lending rates

Two major banks in the country will be increasing their interest rates beginning this week, 20 Feb 2009. The interest rate increase has been blamed on the sustained increase in deposit rates and the high demand for a reducing pool of funds available for lending or system liquidity. Consider this, Fiji’s liquidity has reduced from highs of $300m 18 months ago to an average of less than $50m in recent months.

• ANZ – 0.5% increase in variable interest effective as of 20 Feb 2009.
• Westpac – 0.25% increase in variable interest effective on 25 Feb 2009 and a further increase of 0.25% effective on 23 Mar 2009.

Old vs new lending rates (%) for ANZ:

• Business index rate: 10.25 vs 10.075
• Home loan: 9.50 vs 10.00
• Investment loan: 9.50 vs 10.00
• Personal loan: 11.50 vs 12.00 (secured); 14.20 vs 14.70 (unsecured)
• Rural banking micro loan: 19.00 vs 19.50
• Small loan: 19.00 vs 19.50 (unsecured)

Old vs new lending rates (%) for Westpac:

• Business lending loan: 9.99 vs 10.24 (effective 25 Feb)vs 10.49 (effective 23 Mar)
• Residential property loan: 9.50 vs 9.75 (effective 25 Feb) vs 10.00 ( effective 23 Mar)
• Investment loan: 9.50 vs 9.75 (effective 25 Feb) vs 10.00 (effective 23 Mar)

ANZ reduces interest rates on loans effective 01.09.08

Australia and New Zealand Banking Group Limited (ANZ) has announced a 0.25 % reduction in interest rate for its variable residential property loans. The new standard variable rate will be 9.50 % per annum.

The new fixed rates for residential property loans effective from 1 September, 2008 are:

• 1 Year - 7.50% per annum
• 2 Year - 8.00% per annum
• 3 Year - 8.50% per annum.

For more information, pls call the ANZ Bank branch near you.

ANZ Interest Rates (Updated 1.8.08)

Schedule of interest rates released by ANZ Fiji are as follows :

• Business Index Rate - 10.25%;
• Residential Property Loan : Standard Variable Rate - 9.75%, 1 Year Fixed Rate - 7.75%;
• Investment Loan : Standard Variable Rate - 9.75%, 1 Year Fixed Rate - 7.75%;
• Personal Loans : Secured - 11.50%, Unsecured - 14.20%;
• Small Loans : Unsecured - 19.00%;
• Retail Term Deposits : 9 months to 1 year - 1.25%, 1 to 2 Years - 1.75%, 2 Years to 3 Years - 1.75%.

Interest rates are on a per annum basis and may be varied by ANZ without prior notice.

ANZ Interest Rates (Updated 29.4.08)

Schedule of interest rates released by ANZ Fiji are as follows :

• Business Index Rate - 10.25%;
• Residential Property Loan : Standard Variable Rate - 9.75%, 1 Year Fixed Rate - 7.75%;
• Investment Loan : Standard Variable Rate - 9.75%, 1 Year Fixed Rate - 7.75%;
• Personal Loans : Secured - 11.50%, Unsecured - 14.20%;
• Small Loans : Unsecured - 19.00%;
• Retail Term Deposits : 9 months to 1 year - 1.25%, 1 to 2 Years - 1.75%, 2 Years to 3 Years - 1.75%.

Interest rates are on a per annum basis and may be varied by ANZ without prior notice.

ANZ Bank reduces rates further from 1 January 2008

ANZ Bank in Fiji will reduce interest rates on its lending products from 1 January 2008. Rates reduce by 0.5%. The new rates are as follows :

• Residential Property Loans : 1 year fixed rate, 8.00%; Variable Rate, 10.00%;
• Investment Property Loans : 1 year fixed rate, 8.00%; Variable Rate, 10.00%;
• Personal Loans : Secured, 11.70%; Unsecured, 14.20%;
• Business Index Rate : 10.50%.

For more information, pls call the ANZ Bank branch near you.

ANZ Interest Rates (Updated 1.12.07)

Schedule of interest rates released by ANZ Fiji are as follows :

• Business Index Rate - 11.00%;
• Residential Property Loan : Standard Variable Rate - 10.50%, 1 Year Fixed Rate - 8.50%;
• Investment Loan : Standard Variable Rate - 10.50%, 1 Year Fixed Rate - 8.50%;
• Personal Loans : Secured - 12.20%, Unsecured - 14.20%;
• Small Loans : Unsecured - 19.00%;
• Retail Term Deposits : 9 months to 1 year - 1.25%, 1 to 2 Years - 1.75%, 2 Years to 3 Years - 1.75%.

Interest rates are on a per annum basis and may be varied by ANZ without prior notice.

ANZ Interest Rates (Updated 1.9.07)

Schedule of interest rates released by ANZ Fiji are as follows :

• Business Index Rate - 11.00%;
• Residential Property Loan : Standard Variable Rate - 10.50%, 1 Year Fixed Rate - 9.00%;
• Investment Loan : Standard Variable Rate - 10.50%, 1 Year Fixed Rate - 9.00%;
• Personal Loans : Secured - 12.20%, Unsecured - 14.20%;
• Small Loans : Unsecured - 19.00%;
• Retail Term Deposits : 9 months to 1 year - 2.75%, 1 to 2 Years - 3.00%, 2 Years to 3 Years - 3.00%.

Interest rates are on a per annum basis and may be varied by ANZ without prior notice.

ANZ reduces rates further

ANZ Banking Group Limited will reduce its interest rates further by 0.5% from Monday, 1 October 2007.

The bank said that it is reducing interest rates to ease pressure on its loyal customers most of whom have felt the effect of a downturn in the economy and reduction in consumer confidence.

Secondly, the bank is reducing interest rates to encourage investment. ANZ said that there is no doubt that investment has slowed and that the reduction will encourage some businesses who are contemplating investment to go ahead with their projects.

See our next post for more information on the rates.

ANZ Interest Rates (Updated 1.9.07)

Schedule of interest rates released by ANZ Fiji are as follows :

• Business Index Rate - 11.50%;
• Residential Property Loan : Standard Variable Rate - 11.00%, 1 Year Fixed Rate - 9.00%;
  Investment Loan : Standard Variable Rate - 11.00%, 1 Year Fixed Rate - 9.00%;
• Personal Loans : Secured - 12.20%, Unsecured - 14.20%;
• Small Loans : Unsecured - 19.00%;
• Retail Term Deposits : 9 months to 1 year - 2.75%, 1 to 2 Years - 3.00%, 2 Years to 3 Years - 3.00%.

Interest rates are on a per annum basis and may be varied by ANZ without prior notice.

ANZ Bank Fiji reduces interest rates

ANZ Bank Fiji has reduced its interest rates by 0.5%. The reductions take effect from 1 August 2007. This follows a 0.5% reduction which had taken place on 1 July 2007.

ANZ's actions follow continued improvement in liquidity positions of banks following a reduction in statutory reserve deposit required to be held with the Reserve Bank of Fiji as well as weak demand for credit in recent months.

The bank said that the improved liquidity also indicated a weak investment environment with low demand for investment related lending.

ANZ Interest Rates (Updated 1.8.07)

Schedule of interest rates released by ANZ Fiji are as follows :

• Business Index Rate - 11.50%;
• Residential Property Loan : Standard Variable Rate - 11.00%, 1 Year Fixed Rate - 9.00%;
• Investment Loan : Standard Variable Rate - 11.00%, 1 Year Fixed Rate - 9.00%;
• Personal Loans : Secured - 12.20%, Unsecured - 14.20%;
• Small Loans : Unsecured - 19.00%;
• Retail Term Deposits : 9 months to 1 year - 3.50%, 1 to 2 Years - 4.00%, 2 Years to 3 Years - 4.00%.

Interest rates are on a per annum basis and may be varied by ANZ without prior notice.

ANZ follows Westpac's lead by reducing lending interest rates

ANZ Fiji, followed Westpac's lead, by announcing a reduction of all its lending interest rates by 0.5% effective from 1 July 2007.

The bank's business loan index rate, variable home loan and variable property investment loan rates will fall by 0.5%.

The company's General Manager Fiji said that the increase in interest rates in 2006 and early 2007 had a negative impact on businesses as they were at a time when businesses experienced a reduction in sales.

The reduction in interest rates follows a rise in bank liquidity positions over the past few months after the Reserve Bank of Fiji reduced its statutory reserve deposit requirements (i.e. deposits that banks are required to "lock in" and deposit with the Reserve Bank of Fiji).

Visit ANZ Fiji's website through the appropriate link at the right hand side of this blog.

ANZ Interest Rates (Updated 1.6.07)

Schedule of interest rates released by ANZ Fiji are as follows :

• Business Index Rate - 12.50%;
• Residential Property Loan : Standard Variable Rate - 12.00%, 1 Year Fixed Rate - 9.75%;
• Investment Loan : Standard Variable Rate - 12.00%, 1 Year Fixed Rate - 10.00%;
• Personal Loans : Secured - 12.70%, Unsecured - 14.70%;
• Small Loans : Unsecured - 19.00%;
• Retail Term Deposits : 9 months to 1 year - 4.35%, 1 to 2 Years - 4.35%, 2 Years to 3 Years - 4.50%.

Interest rates are on a per annum basis and may be varied by ANZ without prior notice.

Colonial National Bank Fiji joins in reducing lending rates

Colonial National Bank in Fiji has joined ANZ Banking Group Limited and Westpac Banking Corporation in reducing its lending rates. The rate reduction applies for all home and business loans.

The announcement sees the bank reducing lending rates for home loans and business banking by 0.25%.

The bank's variable rate on residential home loans falls from 12.25% to 12%.

The new rates will take effect from 19 June, 2007.

Banks reduce lending rates

As I predicted earlier on this blog, banks will reduce lending rates from 1 June 2007. Following the lead by Westpac which reduced its lending rates from 1 May 2007 by 0.5%, ANZ Banking Group Limited announced that it will reduce all its lending rates by 0.25% from 1 June. This brings down ANZ's special 1-year fixed rate home loan to an interest rate of 9.75%.

The reduction of lending rates came about after an improvement in bank's liquidity positions when their reserve deposit requirements held on deposit with the Reserve Bank of Fiji was reduced by 1%.

Hopefully, the reduction will not cause another round of increases in the prices of homes and properties which have been at unsustainable levels over the past few years.

Due to a lack of demand and the high interest rates environment, home and property prices have started to come down in recent months.

With a continued improvement in banks' liquidity positions, I would expect lending interest rates to reduce further over the next few months.

Note : Check out the low rates for advertising on our other blog here.