The average interest rate on loans in November 2021 was 5.6 percent, which is lower than the rate of 6.1 percent recorded in November 2020. The financial health indicators for the banking sector continue to show a high level of sustainability in all aspects.
Available evidence shows that most of the credit extended by commercial banks is mainly used to finance properties and other personal items. There are also reports by loan applicants that banks do not carry out proper investigation on project viability particularly when this has to do with projects falling outside the purview of their traditional areas of financing.