Malta, January 2015: The long march to better times after the global crises of 2008 has still a long way to go especially in the European sector. Whereas the US economy is showing clear signs of a sustainable recovery, leading to a stronger US Dollar and the first cautious hint in years on interest rate policy easing by the Fed, the ECB is still struggling to find traction to stimulate Eurozone economies since even the extreme low base rate of 0.05% and the negative deposit rate of - 0.20% do not seem to help certain countries from sinking deeper towards recession.
This prolonged scenario of interest rate decline has naturally had a gradual knock-on effect on deposit rates offered by Banks over these past few years. The days of deposit rates being offered at a discount from the base rate seem long gone now. With European inflationary expectations reading at all-time lows, and with the benchmark German 10 year Bund yield hovering in the 0.5% pa area, Euro deposit rates offered by banks continue to be under pressure. Euro savers, who have suffered this long period of low return are however increasingly expectant of a shift towards better returns.
At IIG Bank we have seen this trend developing as more customers now tend to prefer the shorter term maturities. Nigel Stibbs, Chief Officer - Private Banking said, "Our clients have definitely become more attracted to shorter term maturities of 1 to 2 years, with a view to renegotiating at the end of that period. Customers expect that the rates will be on an upward curve in the medium term and it is this expectation on which many decisions are being made. This valuable feedback has been accepted by the Bank and so, from 12th January 2015, we are focusing our product range to maturities that extend from 3 months to 3 years. We are introducing new term deposits of 18 and 30 months giving a more extensive suite of maturities from which our clients can choose."
IIG Bank's offices are located at Portomaso and Qui-Si-Sana. In the early part of 2015, the Qui-Si-Sana branch will be moving next door to much larger premises. Raymond Busuttil, CEO of the Bank said: "The Bank has developed its trade finance business and its core operations substantially and so our need for additional space is growing. We have been delighted to find additional space at the same prime location which is familiar with our clients. Our new premises will certainly allow us to offer better facilities to our valued customer base. We will be pleased to welcome both existing and new clients to our new environment soon".
IIG Bank's offices are open between 8am and 5pm, from Monday to Friday and can be contacted on 2248 4513 (Qui-Si-Sana) or 2248 4500 (Portomaso).