This story is available exclusively to charts.lk subscribers. Become an member and start reading now.
The bank’s lending rates are soaring along with the Treasury Bill rates. The T-Bill rate represents the government borrowing rate, which is the biggest single borrower in the market. Funds available within the banking sector have declined substantially.
The rentals from advancers ( loan portfolio) have deteriorated due to NPL, money moving to T-Bills, and the decline of the value of the current assets of the banks to pledge and borrow have pushed the cost of borrowing of the bank in return their lending rate has jumped.