Banking sector spread narrows to 5.01 per cent amid falling lending rates

In the banking sector, spreads fell by 379 basis points to 5.01 percentage points in October, down from 8.80 percentage points in September. According to Mettis Global, the decline occurred as lending rates fell while deposit rates rose. However, when compared to the previous year, the average rate paid for new deposits declined by 54 basis points to 10.82 percent.. A significant decrease of 459 basis points compared to October last year. Nevertheless, the real deposit rate. Inflation remained negative at -6.39 percent, though this was an improvement of 238 basis points from the previous month and an increase of 1,278 basis points from a year ago. However, when adjusted for inflation, depositors continue to lose money, which is highest in Asia.