In response to the Governor of the Central Bank of Samoa signalling the banks for a reduction in Term Deposit interest rate, the Bank of South Pacific Samoa Limited (BSP) had taken the lead in announcing the first reduction in its indicator Lending Rate (ILR) of 1 basis point, passing on to customers 100% savings from the reduction in Term Deposit rates to 3%, effective 1st December 2020
BSP’s lending products that are linked to its ILR will start reducing from 1 February. With lending rates reducing, BPS’s deposit rates will continue to be adjusted with term deposit rates being reduced when existing term deposits mature. The interest rates on savings products such as our Plus Saver and Kids Account will also be reduced.
“The decision by BSP to collaborate with the Central Bank of Samoa in reducing Term Deposit rates and in turn reducing its Indicator Lending Rate is a large component of our support package for customers affected by Covid-19 downturns”, BSP Samoa Country Head, Maryann Lameko-Vaai stated.
“Over the next 12 months, we want to further support business and consumer confidence, to bolster cash flows, reduce costs and improve the availability of finance.”
BSP acknowledged the positive drive by the Central Bank of Samoa to encourage the reduction of Term Deposit rates at this time because it is important that during conditions such as these, the banking system remains liquid and Banks have the capacity to provide low-cost loans that will reduce costs faced by businesses and households.
BSP’s Indicator Lending Rate will be reviewed regularly, passing on any further savings on a monthly basis. Interest rates effective 1st February 2021 are available below noting the 1bp change in lending rates.