FD rates for 2020 - Any banks

[Sam Walton]

මට ආරංචිය ආවෙ ඕකෙ අනිත් පැත්ත බං. FD Rates වැඩි වෙයි කියල. වෙනකල්ම තමයි බලන්න ඕන. කළිනුත් ඔහොම වැඩිවෙයි කියල බලං ඉඳල මෙහෙම වෙලා තියෙන්නෙ


හැබැයි මගේ පර්සනල් මතය නම් ඔහොම රේට්ස් අඩු කරන එක තේරුමක් නෑ රටේ ඉන්ෆාස්ට්‍රක්චර් එක හදන්නෙ නැතුව. ඔය වැඩෙන් වෙන්නෙ එක පැත්තකින් බැංකු සෙට් එක අවුල් යනව. අනිත් පැත්තෙන් මිනිස්සු සක්විතිල වගේ අයට රැවටිල සල්ලි ඔක්කොම විනාස කරගන්නව. රටේ මුලු ආර්ථිකයම අන්ස්ටේබල් වෙන්න පුලුවන් කියල හිතෙනව ඔය වගේ වැඩ වලින්

Lower Interest rate means lower borrowing cost. Many will take bank loans for businesses, constructions etc. Ultimately will lead to a high economic growth.. Banks' profit will go up due to low default probability and increased customer base

 

[sithija.h]

Lower Interest rate means lower borrowing cost. Many will take bank loans for businesses, constructions etc. Ultimately will lead to a high economic growth.. Banks' profit will go up due to low default probability and increased customer base

That was just my personal opinion mcn.
How could you say many will take bank loans for businesses without proper business knowledge?
If someone really needs to startup a business, they will do it even if Bank interest rates are higher than 20%.
That's why i mentioned government has to build up infrastructure here then go for these steps. I feel they are going to do the last step at first.

Lowest interest rates are OK for well developed countries like USA, UK, Australia, etc. But countries like Sri Lanka, I am thinking this is not a good idea.

 

[Sam Walton]

That was just my personal opinion mcn.
How could you say many will take bank loans for businesses without proper business knowledge?
If someone really needs to startup a business, they will do it even if Bank interest rates are higher than 20%.
That's why i mentioned government has to build up infrastructure here then go for these steps. I feel they are going to do the last step at first.

Lowest interest rates are OK for well developed countries like USA, UK, Australia, etc. But countries like Sri Lanka, I am thinking this is not a good idea.

Well let me give u an example.

6% interest rate vs 15% interest rate for 30 lak to be paid within 10 years. Your monthly payment (interest + capital) will be 33,000 for 6% and 48,000 for 15%.

Image he can only afford 35,000/- per month as repayments.

If the interest rate is 15% he cannot go for 30 lak. He will go for 20 lak.

He will use that 20 lak and build a house with a cost of 20 lak. For that he purchases building materials and labour worth 20 lak.

If the interest rate was at 6% he would have built a house with a cost of 30 lak. He would have purchased building materials and labour worth 30 lak.

If the rate is 6% (not 15%), the difference of 10 lak goes to the material supplier, the men work there. Their demand will go up and so as the profit.. They will recruit many to cater the demand.. They will start new plants.. Plus the constructed house is much better..

That's the simple logic behind...

yes Government has to build the infrastructure to facilitate businesses. so as the lower borrowing cost which encourage new investments and consumption.