Banks more cautious on tourism and agricultural sector loans

MOUNTING insecurity, inadequate rains and high cost of living led a number of banks to increase their lending rates during the second quarter of the year, according to an industry report published Monday. The quarterly credit officer survey by regulator the Central Bank of Bank found that 13 out of 43 lenders tightened their credit standards–factors that inform lending decisions–by 13 per cent due to escalating political risk between April and June compared with January to March period. Similarly, at least 11 banks raised their lending standards quarter on quarter by 12 per cent citing...