Volksbank's interest rate structure is 'very fair and transparent'
Volksbank Malta, based in Dingli Street, Sliema, is probably the only retail bank in Malta that has passed on in full the recent cuts in interest rates, Herbert Skok, the bank's managing director, told The Times Business. "Volksbank's interest rate...
Volksbank Malta, based in Dingli Street, Sliema, is probably the only retail bank in Malta that has passed on in full the recent cuts in interest rates, Herbert Skok, the bank's managing director, told The Times Business.
"Volksbank's interest rate structure is very fair and transparent. The interest rate is not fixed unilaterally by the Bank, but rather the Bank and the customer agree at the outset on a fixed margin that will be charged on top of the Euribor interest rate as determined by the international markets.
"The Euro Interbank Offered Rate (Euribor) is an interest rate based on the average interest rates at which a panel of European banks lend money to one another. The Euribor interest rates are calculated daily and made public at 11 a.m.," he said.
Euribor is a trade mark owned by FBE (Federation Bancier European based in Bruxelles).
Mr Skok said that for most loans and overdrafts the effective rate is calculated every month to reflect the market conditions. He said Volksbank's customers can find out the rate they are being charged by simply going on the internet and viewing recent Euribor quotes on one of the financial websites. The same applies for our depositors and term deposits are rolled-over on maturity at market rates discounted by a fixed margin.
Volksbank Malta Limited has, since November 2002, been fully licensed to operate as a commercial bank and is now servicing both international and local customers. Employing an international workforce, Volksbank Malta offers personal and corporate banking, home loans, trade finance, investment services and foreign exchange.
"Volksbank's interest rate structure is very fair and transparent. The interest rate is not fixed unilaterally by the Bank, but rather the Bank and the customer agree at the outset on a fixed margin that will be charged on top of the Euribor interest rate as determined by the international markets.
"The Euro Interbank Offered Rate (Euribor) is an interest rate based on the average interest rates at which a panel of European banks lend money to one another. The Euribor interest rates are calculated daily and made public at 11 a.m.," he said.
Euribor is a trade mark owned by FBE (Federation Bancier European based in Bruxelles).
Mr Skok said that for most loans and overdrafts the effective rate is calculated every month to reflect the market conditions. He said Volksbank's customers can find out the rate they are being charged by simply going on the internet and viewing recent Euribor quotes on one of the financial websites. The same applies for our depositors and term deposits are rolled-over on maturity at market rates discounted by a fixed margin.
Volksbank Malta Limited has, since November 2002, been fully licensed to operate as a commercial bank and is now servicing both international and local customers. Employing an international workforce, Volksbank Malta offers personal and corporate banking, home loans, trade finance, investment services and foreign exchange.