Stanbic Bank Uganda has for the fourth time this year reduced its prime lending rate by 100 percentage points, from 22 per cent to 21 per cent.
This is the fourth time the bank has reduced the rate in the last 8 months and it means the bank now has the lowest Prime Lending Rate among commercial banks active in the lending sector.
Announcing the rate reduction that comes into effect on December 1, the Chief Executive of the bank Patrick Mweheire said: “We have been encouraged by the news and data coming from the central bank which suggests the economy is recovering, our decision to reduce the rate is based on the prevailing economic conditions which are improving and our policy of maintaining the transparency of our pricing to our customers, where we match any movements of the Central Bank Rate with adjustments to our Prime Lending Rate.”
He added: “Despite signs of the recovery, we appreciate these are still very challenging times especially for small scale businesses which constitute the bulk of the private sector and contribute immensely to GDP output. Giving them access to cheaper credit is therefore key to driving long term sustainable economic development.”
“As a bank our objective is to put our customer’s increasingly in control of their overall banking experience; digital channels give us this possibility, a reason why we are investing so heavily towards their continuous development and integration into our banking offering,” Mr Mweheire said.