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.

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.

Westpac Interest Rates (updated 1.4.09)

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

• Business Lending Rate (effective 20.4.09) - 10.99%;
  Residential Property Loan (effective 20.4.09) : Variable Rate – 10.50%, 1 year Fixed Rate – 8.50%;
• Investment Loan (effective 20.4.09) : Variable Rate - 10.50%, 1 year Fixed Rate - 8.50%;
• Retail Term Deposits (effective 30.3.09) : 6 to less than 9 months - 2.25%, 9 months to less than 1 year - 3.00%, 1 year to less than 1.5 Years - 3.50%, 1.5 years to less than 2 Years - 3.75%, 2 years to less than 3 Years - 4.00%.

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

Individuals and groups that need investment advice, or advice with regard to capital markets issues, can use our company, Gilbert & Samuels Company Limited. We also do strategic planning, business continuity planning and capacity assessment consultancies. Also contact us if you require investment portfolio management services. Our contacts are: telephones (679) 3342719, (679) 3544897 or e-mail: info@gilbert.com.fj.

Westpac Interest Rates (updated 2.3.09)

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

• Business Lending Rate - 10.24%;
• Residential Property Loan : Variable Rate – 9.75%, 1 year Fixed Rate – 8.00%;
• Investment Loan : Variable Rate - 9.75%, 1 year Fixed Rate - 8.00%;
• Retail Term Deposits: 6 to less than 9 months - 1.75%, 9 months to less than 1 year - 2.25%, 1 year to less than 1.5 Years - 2.50%, 1.5 years to less than 2 Years - 2.50%, 2 years to less than 3 Years - 3.50%.

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

Individuals and groups that need investment advice, or advice with regard to capital markets issues, can use our company, Gilbert & Samuels Company Limited. We also do strategic planning, business continuity planning and capacity assessment consultancies. Our contacts are: telephones (679) 3342719, (679) 3544897 or e-mail: 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)

Westpac Interest Rates (updated 1.1.09)

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

• Business Lending Rate - 9.99%;
• Residential Property Loan : Variable Rate – 9.50%, 1 year Fixed Rate – 7.50%;
• Investment Loan : Variable Rate - 9.50%, 1 year Fixed Rate - 7.50%;
• Retail Term Deposits: 6 to less than 9 months - 1.75%, 9 months to less than 1 year - 2.25%, 1 year to less than 1.5 Years - 2.50%, 1.5 years to less than 2 Years - 2.50%, 2 years to less than 3 Years - 3.50%.

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

Individuals and groups that need investment advice, or advice with regard to capital markets issues, can use our company, Gilbert & Samuels Company Limited. We also do strategic planning, business continuity planning and capacity assessment consultancies. Our contacts are: telephones (679) 3342719, (679) 3544897 or e-mail: info@gilbert.com.fj.

Westpac Interest Rates (updated 1.12.08)

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

• Business Lending Rate - 9.99%;
• Residential Property Loan : Variable Rate – 9.50%, 1 year Fixed Rate – 7.50%;
• Investment Loan : Variable Rate - 9.50%, 1 year Fixed Rate - 7.50%;
• Retail Term Deposits: 6 to less than 9 months - 1.25%, 9 months to less than 1 year - 1.75%, 1 year to less than 1.5 Years - 1.75%, 1.5 years to less than 2 Years - 2.00%, 2 years to less than 3 Years - 3.00%.

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

Individuals and groups that need investment advice, or advice with regard to capital markets issues, can use our company, Gilbert & Samuels Company Limited. We also do strategic planning, business continuity planning and capacity assessment consultancies. Our contacts are: telephones (679) 3342719, (679) 3544897 or e-mail: info@gilbert.com.fj.

Westpac Interest Rates (updated 5.10.08)

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

• Business Lending Rate - 9.99%;
• Residential Property Loan : Variable Rate – 9.50%, 1 year Fixed Rate – 7.50%;
• Investment Loan : Variable Rate - 9.50%, 1 year Fixed Rate - 7.50%;
• Retail Term Deposits: 6 to less than 9 months - 1.25%, 9 months to less than 1 year - 1.75%, 1 year to less than 1.5 Years - 1.75%, 1.5 years to less than 2 Years - 2.00%, 2 years to less than 3 Years - 3.00%.

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

Westpac Interest Rates (Updated 1.8.08)

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

• Business Lending Rate - 9.99%;
• Residential Property Loan : Variable Rate - 9.50%, 1 year Fixed Rate - 7.50%;
• Investment Loan : Variable Rate - 9.50%, 1 year Fixed Rate - 7.50%;
• Retail Term Deposits : 6 to less than 9 months - 1.25%, 9 months to less than 1 year - 1.75%, 1 year to less than 1.5 Years - 1.75%, 1.5 years to less than 2 Years - 1.75%, 2 years to less than 3 Years - 1.75%.

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

Westpac Interest Rates (Updated 1.4.08)

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

• Business Lending Rate - 9.99%;
• Residential Property Loan : 1 year Fixed Rate - 7.75%;
• Investment Loan : Variable Rate - 9.75%, , 1 year Fixed Rate - 8.00%;
• Retail Term Deposits : 6 to less than 9 months - 1.25%, 9 months to less than 1 year - 1.75%, 1 year to less than 1.5 Years - 1.75%, 1.5 years to less than 2 Years - 1.75%, 2 years to less than 3 Years - 1.75%.

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

Westpac Interest Rates (Updated 2.1.08)

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

• Business Lending Rate - 9.99%;
• Residential Property Loan : Variable Rate - 9.75%, 1 year Fixed Rate - 8.00%;
• Investment Loan : Variable Rate - 9.75%, , 1 year Fixed Rate - 8.00%;
• Retail Term Deposits : 6 to less than 9 months - 1.25%, 9 months to less than 1 year - 1.75%, 1 year to less than 1.5 Years - 1.75%, 1.5 years to less than 2 Years - 1.75%, 2 years to less than 3 Years - 1.75%.

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

Westpac Interest Rates (Updated 3.12.07)

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

• Business Lending Rate - 10.49%;
• Residential Property Loan : Variable Rate - 10.25%, 1 year Fixed Rate - 8.50%;
• Investment Loan : Variable Rate - 10.25%, , 1 year Fixed Rate - 8.50%;
• Retail Term Deposits : 6 to less than 9 months - 1.25%, 9 months to less than 1 year - 1.75%, 1 year to less than 1.5 Years - 1.75%, 1.5 years to less than 2 Years - 1.75%, 2 years to less than 3 Years - 1.75%.

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

Westpac Interest Rates (Updated 1.11.07)

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

• Business Lending Rate - 10.49%;
• Residential Property Loan : Variable Rate - 10.25%, 1 year Fixed Rate - 8.50%;
• Investment Loan : Variable Rate - 10.25%, , 1 year Fixed Rate - 8.50%;
• Retail Term Deposits : 6 to less than 9 months - 1.25%, 9 months to less than 1 year - 1.75%, 1 year to less than 1.5 Years - 1.75%, 1.5 years to less than 2 Years - 1.75%, 2 years to less than 3 Years - 1.75%.

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

Westpac Interest Rates (Updated 1.10.07)

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

• Business Lending Rate - 10.49%;
• Residential Property Loan : Variable Rate - 10.25%, 1 year Fixed Rate - 8.50%;
• Investment Loan : Variable Rate - 10.25%, , 1 year Fixed Rate - 8.50%;
• Retail Term Deposits : 6 to less than 9 months - 1.25%, 9 months to less than 1 year - 1.75%, 1 year to less than 1.5 Years - 1.75%, 1.5 years to less than 2 Years - 1.75%, 2 years to less than 3 Years - 1.75%.

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

Westpac Interest Rates (Updated 1.9.07)

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

• Business Lending Rate - 10.99%;
• Residential Property Loan : Variable Rate - 10.75%, 1 year Fixed Rate - 9.00%;
• Investment Loan : Variable Rate - 10.75%, , 1 year Fixed Rate - 9.00%;
• Retail Term Deposits : 6 to less than 9 months - 1.50%, 9 months to less than 1 year - 3.00%, 1 year to less than 1.5 Years - 3.00%, 1.5 years to less than 2 Years - 3.00%, 2 years to less than 3 Years - 3.00%.

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

Westpac Interest Rates (Updated 1.8.07)

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

• Business Lending Rate - 10.99%;
• Residential Property Loan : Variable Rate - 10.75%, 1 year Fixed Rate - 9.00%;
• Investment Loan : Variable Rate - 10.75%, , 1 year Fixed Rate - 9.00%;
• Retail Term Deposits : 6 to less than 9 months - 1.50%, 9 months to less than 1 year - 3.00%, 1 year to less than 1.5 Years - 3.00%, 1.5 years to less than 2 Years - 3.00%, 2 years to less than 3 Years - 3.00%.

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

Westpac to reduce interest rates

Westpac Banking Corporation will reduce its base business and consumer lending rates further by 0.5% effective 1 August 2007.

The reduction follows earlier reductions in interest rates by Westpac following an improvement in bank's liquidity positions which came about as a result of the reduction by 1% of the statutory deposits that banks are required to hold with the Reserve Bank of Fiji.

The reduction in loan interest rates will ease repayments and interest paid by the bank's customers.

Westpac has said that its rates would be the lowest in the banking system in Fiji after 1 August 2007.

Westpac and Colonial National Bank appear to be the market leaders in setting interest rates direction for banks in Fiji.

Westpac Interest Rates (Updated 2.7.07)

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

• Business Lending Rate - 11.49%;
• Residential Property Loan : Variable Rate - 11.25%, 1 year Fixed Rate - 9.50%;
• Investment Loan : Variable Rate - 11.25%, , 1 year Fixed Rate - 9.50%;
• Retail Term Deposits : 6 to less than 9 months - 3.75%, 9 months to less than 1 year - 3.75%, 1 year to less than 1.5 Years - 3.75%, 1.5 years to less than 2 Years - 3.75%, 2 years to less than 3 Years - 3.75%.

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

Westpac reduces interest rates further

Westpac Banking Corporation has reduced its lending rates further by 0.25% from today, Monday, 25 June 2007. The total reductions in interest rates over the month was 0.5%. The bank had made the related announcement earlier this month and which we posted on this blog on 3 June 2007.

The bank had earlier stated that the reduction of its business and consumer base lending rates indicates the improved liquidity position that the bank has experienced since the recent reduction of statutory reserve deposits requirements (i.e. deposits required to be held with the Reserve Bank of Fiji) in May.

The bank said that it would continue to monitor liquidity in the banking system and will review its interest rates accordingly.