Should depositors panic?
Family Bank slipped into the red in the nine months to September, weighed down by lower interest income and reduced lending in the wake of introduction of the rate cap regime.
The mid-sized lender Wednesday posted a loss of Sh743 million compared to a net profit of Sh963 million during a similar period last year.
Net interest earnings went down by 46 per cent to Sh2.94 billion in 2017 in the nine months through September from Sh5.47 billion last year.
Family Bank’s total interest income contracted by 43 per cent to Sh4.98 billion from Sh8.78 billion, underlining the extent to which the new regime putting a ceiling on lending rates had pushed its earnings.
Last year, Parliament passed a law restricting the lending rate to four percentage points above the prevailing base rate, also called Central Bank Rate.
Family Bank slipped into the red in the nine months to September, weighed down by lower interest income and reduced lending in the wake of introduction of the rate cap regime.
The mid-sized lender Wednesday posted a loss of Sh743 million compared to a net profit of Sh963 million during a similar period last year.
Net interest earnings went down by 46 per cent to Sh2.94 billion in 2017 in the nine months through September from Sh5.47 billion last year.
Family Bank’s total interest income contracted by 43 per cent to Sh4.98 billion from Sh8.78 billion, underlining the extent to which the new regime putting a ceiling on lending rates had pushed its earnings.
Last year, Parliament passed a law restricting the lending rate to four percentage points above the prevailing base rate, also called Central Bank Rate.