Demand for credit has been on a steady rise this year with the Central Bank saying that growth year-on-year could hit 13% -almost double the last years figure.
Bankers who are reporting healthy profits for the half year just ended however say demand could still improve and that the big contributions to the bottomline is still coming from their Treasury operations.
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rnHowever, the second half of the year is expected to provide better lending opportunities boosting core-banking profits.rn
rnCentral Bank cut its key repo and reverse-repo rates on Friday and said banks could immediately cut lending rates by upto 2% percent.rn
rnThe falling rates however have had little effect on new credit being given.rn
rnCredit demand has shown a consistent growth over the last few years and even during the interest rate hike starting in the late nineties.rn
rnldblquote We have seen improvement in credit demand. It would Good for the bank if there is a higher growth rate in the advances area, dblquote Harris