Banks need to see the interest rates of other countries nearby whereby their interest rates are lower compared to our country. The government is taking a rightful decision and we the people fully support this.
Whoever disagrees, simply chuck them out and replace them with someone more competitive and who has in depth knowledge of banking system. Some of the so called heads don’t have any idea of how banking system runs and yet they talk.
Once Housing loan in all Banks fell down to 10% when NPPF first came in the market. Similarly, if Government made easy access to loans with low interest rates with one new agency like BOIC, all Banks will be automatically forced to reduce their lending rates too. FIAB will not come to agreement in reducing lending rates easily simply based on discussions.
Open another financial institute which can loan us at low rates then naturally BoB, BNB, will lower rates.
BNB MD says banks can’t lend at lower rates? I am sure there is a very big room to reduce the lending rates. If banks are not unreasonably squeezing the borrowers to make shamefully huge profits, where are such profits coming from? Banks, like BNB, has a history of giving 6-11 months salary as bonuses. It is doubtful if the banks are making profits because of their efficiency. I think the banks are making huge profits only because of the unreasonably high interest rates that they have been allowed to charge the hapless borrowers.
The government, RMA, and the banks should have mercy on the borrowers (who borrow not because the lending rates are reasonable, but because they have no alternative) and bring down the rates to reasonable and logical levels. Banks can make reasonable profits even without taking undue advantage of the borrowers and charging killing rates.
It’s better RMA does not interfere with banks and let the banks do competition on their own. People are still coming for loans as they have no option. Why are all banks having the same interest rate and what is use of government and RMA allowing more banks to be established in the country. The Public are victimized.
Ugyen P. Wangyel
For the benefit of all common people please do it earliest.
Unless the government takes it seriously no bank CEO would agree because of the huge profits they make and earn through dividends.
I would suggest to introduce a public housing loan whereby a person who is building apartment gets a loan at lower interest and a person doing luxury house for single family gets high interest rate. Similarly, a luxury tax for vehicle as well. Person buying his first car shouldn’t be taxed heavily, but his extra cars should be taxed heavily. Public transport cars should be given at lower tax rates or even lower interest.
I am voting for PDP (100%) if they succeed in bringing down the interest rate considerably.
On Induction Cooktops
I was wondering if we have ever considered the idea of gradually stop using LPG cylinders in Bhutan. And use Induction Cooktops instead; which functions on electricity. It would be advantageous for us as we have our hydro power.
Currently, we are importing Liquefied Petroleum Gas (LPG) from India. There is shortage of LPG supply all the time, due to which we have restrictions/limitations on the no. of cylinders we can use every month. And every now and then, there is panic among people that LPG supply from India may be stopped entirely.
Since this item is a everyday necessity, it would be wise not to be so dependent on another country for it. If we move from LPG cylinders to Induction Cooktops, it will be another tiny step towards reducing our trade deficit/outflow of our foreign currency – in this case, the Rupee.
Note:LPG’s pungent odor could apparently cause respiratory diseases, especially for children with asthma, when inhaled heavily in its gas form. It is also fire-hazard as this gas is highly flammable. The gas could produce fire in just a small spark.
On the other hand, Induction Cooktops is not fire hazard and does not create explosion. It also does not emit toxic and hazardous chemicals compared to LPG.
Current studies show that more people around the world are now converting their gas burners into Induction Cooktops.
By Chuni Dorji