The Central Bank yesterday defended imposing interest rate caps insisting it would be a credit positive for local banks as the move would lead to the gradual increase of credit demand, lower Non-Performing Loans (NPLs) and stimulate economic activity. Countering Moody’s Investor Services latest report released last Friday saying that the interest rate caps would be a credit negative for banks, the Monetary Authority argued that it does not expect a material change in interest margins of the banking system arising from the imposition of caps on lending rates, holding other factors constant.–  Daily Ft  




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