Our Scans · (FS.5.07) Inter-Bank Lending · Weekly Summary

• Halifax, Accord and Santander all hiked rates slightly as swap rates - which are used to determine how much it costs banks to borrow in order to lend - increased and hopes of further Bank of England base rate cuts receded. SKY
• The former Deputy Vice President of the HDFC Bank went on to add that a rise in business volume is expected to lend support to the largest public sector bank of India in meeting the challenges on the CASA front in the post-high interest rate regime. Mint
• Countries could lend some of their Special Drawing Rights, which central banks use for storing reserves, to the World Bank in exchange for a linked long-term bond. Reuters
• Synthetic securitization achieves a similar outcome to conventional asset-backed securitization through the purchase of credit protection, which could allow the World Bank to lend more elsewhere. Phenomenal World
• While the UK Infrastructure Bank will also be able to lend up to £4bn to local authorities, increasing debt may not always be the best solution for many cash-strapped local authorities. ICAEW
• El Salvador is negotiating a new debt agreement with the International Monetary Fund; the United States could use its leverage to insist that the IMF, World Bank, and other multilaterals not lend to a country with rapidly deteriorating rule of law. Just Security
• 10,000 crores will be provided by the Reserved Bank of India for three years at the repo rate to small finance banks to lend individuals, small and medium enterprises (SMEs). Gradeup
• In addition to the recent news on Bank Indonesia's benchmark rate reduction to a record low of 3.75% to incentivise banks to lend more, and the successful development of several COVID-19 vaccines, the new Omnibus law is giving hopes for a quick economic recovery in Indonesia. Passle
• With the SBV urging commercial banks to cut input costs and stabilise lending rates, interest rates are expected to remain low in the second half of the year. https://vir.com.vn/
• The Reserve Bank of India expects the final interest rate charged by digital lenders to fall once the new draft co-lending guidelines come into effect. IBPS Guide
• All eyes will be on the Federal Reserve Wednesday, but few expect the US central bank to make any change to its main lending rate, which is at its highest level in more than two decades. Mint
• The People's Bank of China said it will cut key lending rates by 10 basis points and lower the reserve requirement ratio by 50 basis points. Business Tech Africa
• Most commercial banks in Mexico will only lend money to foreign nationals with Residente Permanente status; foreign nationals with Residente Temporal status cannot usually acquire credit in Mexico. Mexperience
• The Reserve Bank of India is expected to announce another repo rate cut soon, which will further enhance liquidity and likely lower lending rates. The Economic Times
• The Reserve Bank of India will introduce new regulations to prevent loans to entities that wield influence over lending institutions. Times of India
• The People's Bank of China left its one-year medium-term lending facility rate unchanged at 2.5%, as expected. CNBC
• The source of consternation appeared to be China's central bank trimming its one-year lending rate by 10 basis points and retaining its five-year rate, confounding analysts who had been expecting a 15 basis point cut. Ship & Bunker
• Banks are preparing for a CRE lending rebound as interest rates gradually fall, which could drive new loan originations in 2025. CRE Daily
• The US Federal Reserve is likely to keep interest rates higher for longer than the Bank of England, as the UK economy with its shorter-term mortgage lending structure and greater overall vulnerability to higher rates, weakens sooner. UK - EN - Institutional
• The Bank of Canada will likely continue to drop its target for the overnight lending rate into the first part of 2025, meaning buyers can expect their borrowing power to expand further. CNW Group
• The Reserve Bank of New Zealand will implement restrictions by the middle of 2024, which will likely limit home loan lending during boom times. NZ Herald
• The People's Bank of China is expected to keep key lending rates on hold on Monday, as traders in Asia digest the implications of the G7's stance on China and the tense and fluid situation in Washington regarding the U.S. debt ceiling standoff. SURPERFORMANCE
• With interest rates falling, banks are eyeing a potential return to form for CRE lending in 2025 after two years of reduced activity. CRE Daily

Last updated: 02 September 2025