''...you cannot force a bank to give a loan where the return does not compensate for not only the credit risk, but also the overall cost of doing business, and a profit margin as well.
Similarly, you cannot force a bank to take term deposits at a prescribed rate.
What the brave legislators are trying to achieve will essentially undo the phenomenal access to credit over the last decade by the ordinary mwananchi. Banks will simply stop taking term deposits.
At 70 per cent of CBR, term deposits will be too expensive and not worth the grief. Savings accounts and fixed deposits as we know them will disappear and customers will only have access to current accounts for demand deposits
On the loan side, banks will view the price cap as not worth the risk...''
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GOD BLESS YOUR LIFE