Banking Customer Perception about Interest Rate Spread (Irs) In Pakistan.

Author(s)

Kaleem Mustaf ,

Download Full PDF Pages: 131-137 | Views: 384 | Downloads: 118 | DOI: 10.5281/zenodo.3441909

Volume 2 - December 2013 (12)

Abstract

This study is about banking consumer perception and awareness regarding banking interest rate spread (IRS) in Pakistan, Many banking consumer perceive that in Pakistan, banks are charged more interest rate on loans, but pay a small amount in term of profits on their saving, all though there are many factors behind the borrowing and offering rates difference for banking consumers, which are beyond the scope of this study, and it is limited to the consumers perception only. This study objective is to conduct the study about banking interest rate paid on savings (profit) and charge on Loans (Mark Up) and limited only to existing depositors and borrower of the banking industry of Pakistan. This research is exploratory in nature to find out the answers of questions regarding the consumer awareness and unit of analysis for my research are current customers of commercial banks and questioner used as research Instruments to gather data. Results of research shows that many consumers of banking industry consider banks are paying less on consumer savings in term of profit, but charge higher rate of interest on loan and advances in term of markup, although banks get funds form State Bank of Pakistan and other banks at lower rate. A large number of respondents also dissatisfy with current banking interest rate spread in the Pakistan

Keywords

Interest Rate Spread (IRS), Banking Consumer’s Perception, Credit Growth, Karachi Inter Bank Offer Rate (KIBOR)

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