Gen- dude,when I read your query,it reminded me that English is not my 1st language and neither is it yours judging by the query. What do u mean by banks sustaining lending rates? Did u mean maintain lending rates? And by lending rates,do you mean the interest rates they charge customers or the interest margin they earn net of funding cost? Or were u talking about the percentage of loan growth? By costs,do u mean funding costs or operational costs?
In anycase,I'll attempt to frame the query and answer it and if its not the right one,lemme know and I'll respond l8r.
Assuming u wanted to know how banks maintain their interest margins,most banks always lend with reference to two things in the main:
1. Funding cost: i.e. how much they have to pay for deposit;in the interbank lending and from CBK as lender of last resort. Clearly banks will charge an interest rate that gives them a sufficient margin above this funding cost. There is also stuff about mismatch,but its too completed to go into here.
2. Operational costs: Most banks will always lend such that amount of loans multiplied by interest rate charged on those loans less the banks funding costs less operational costs (staff,office,it) are more than covered.
Banks also lend with reference to the credit quality of the customer as this dictates the amount of regulatory capital they need to hold. But they also consider the quality of loans they already hold.
Hope that long-winded answer helped and answered your question.
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