Regulatory Alerts2009-04-29 | BSD/DIR/GEN/CIR/03/005RE: Sanctions for the Violation of the Decision on Maximum Deposit Rate, Lending Rate and Other Charges
This circular from the Director of Banking Supervision clarifies that the new caps on deposit and lending rates, along with other charges at 15%, 22%, and 2% per annum respectively apply to all forms of deposit and lending transactions between banks and customers, as well as inter-bank dealings, but do not affect transactions entered before April 1, 2009. The circular has no retroactive effect.
09 462 36401 09 462 35433 BSD/DIR/GEN/CIR/03/005 April 23, 2009 CIRCULAR TO ALL BANKS, RE: SANCTIONS FOR VIOLATION OF THE DECISION ON MAXIMUM DEPOSIT RATE, LENDING RATE AND OTHER CHARGES Further to our circular dated April 8, 2009 ref. BSD/DIR/GEN/CIR/03/003 on the above subject, and the enquiries from various stakeholders on the extent of the application of the circular and the status of deposit and lending transactions contracted by banks before April 1, 2009, it has become necessary to make the following clarifications:
-
The capping of deposit rate at 15% per annum, lending rate at 22% per annum and other charges at 2% per annum is applicable to all forms deposit and lending transactions between Deposit Money Banks and their customers, as well as Inter-bank, Bankers Acceptances and Commercial Papers.
-
The circular has no retroactive effect and therefore does not apply to transactions validly entered into before April 1, 2009.
All Deposit Money Banks are hereby advised to be guided accordingly. D. A. N. EKE Ag. DIRECTOR OF BANKING SUPERVISION