"The only meaningful reduction in lending interest rates has come about from our own Government’s contribution towards reducing these lending rate charges ... the banks themselves have done nothing to help."
During these severe economic times just about every business
and every person in the Cook Islands has been adversely affected by this
The only businesses that have not been seriously affected
are the banks who have steadfastly retained their excessively high lending
I don’t blame the local management and staff for this
situation as they are just following the directives and instruction given by
the overseas management whose sole aim is to make as much money as they can for
their shareholders at the expense of the local Cook Islands people.
The bank managers are judged on how much money they can make
from their particular branch and of course this profit largely comes from
charging interest on the money that they lend out.
So, there is an incentive for them to keep the interest
rates as high as they can for as long as they can.
The only meaningful reduction in lending interest rates has
come about from our own Government’s contribution towards reducing these
lending rate charges ... the banks themselves have done nothing to help.
The difference between what is given out in interest for
deposits and what is charged in interest for loans is excessive compared to
almost all other countries in the world.
The banks often give various excuses why their lending rates
are so high because failure to do this would be an admission that they are
actually charging us too much interest on their loans.
Response from Banking Association of Cook Islands (BACI):
BACI is truly appreciative of your (editor’s) thoughtfulness
to let us know of the publication of the letter to the editor with full
We encourage our customers and the general community to
contact any of the member Banks directly to discuss any areas of particular concern,
whether directly impacted or for the interest of the wider community.
In closing, we wish our customers and our communities a
safe, loving and blessed festive season.