NewsWhore
03-17-2009, 05:20 PM
Apolinar Veloz, former general manager at the Central Bank says that the measures announced by the Central Bank to stimulate a reduction in lending rates have so far only benefited the commercial banks. He said the rate reduction has yet to trickle down to business and individual consumers. Veloz, interviewed on the Uno + Uno TV program on TeleAntillas said that the monetary measures have so far only had an impact on the cost of money for banks. Veloz said that what has resulted is that the banks' profit margin and money yield has increased for the banks.
He says since there is a lack of liquidity in the financial markets, those who need to borrow money will have to continue to pay high interest rates, as reported in Hoy.
Veloz said that administrative costs at Dominican banks are excessively high, adding that until they resolve that problem, the banks are not likely to pass any savings on to consumers.
More... (http://www.dr1.com/index.html#4)
He says since there is a lack of liquidity in the financial markets, those who need to borrow money will have to continue to pay high interest rates, as reported in Hoy.
Veloz said that administrative costs at Dominican banks are excessively high, adding that until they resolve that problem, the banks are not likely to pass any savings on to consumers.
More... (http://www.dr1.com/index.html#4)