Acceptance
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There are conflicting reports regarding what are the real interest rates charged by the banks. Last week a report claimed it was 34.5% for March; within the same week the Central Bank in its monthly report announced that the maximum lending rate declined to 19.9%.
The difference might partly be explained by the fact that a month can sometimes be a long time in banking just as it is in politics. Failure to have the 2004 budget passed might have created liquidity problems for banks. In addition, the CBN only concerns itself with the stated interest rates by banks. But borrowers know that the banks as a whole have devised all sorts of tricks to inflate the actual rate paid as interest including one - off acceptance charges and higher COT on transactions based on the loan taken. In the end the real interest rate is always closer to 30-35% depending on the bank.
Vanguard will also like to remind the Senators of previous attempts to peg interest rates by government fiat...