Interest rates and banks’ margins
SEPTEMBER 6, 2021
At the end of the second quarter of the year we wrote about how Nigerian banks were moving lending rates in order to accommodate rising market interest rates (see Coronation Research: Nigerian Banks, Resilience Built In, 25 June). Since then market interest rates, and interbank lending rates, have been falling. This suggests margin expansion for banks, as well as support for those banks that rely on the interbank market for funds.