Editor,

RE: "High loan interest rates likely to persist – banks” (The New Times, August 31).

"Domestic savings in Rwanda are generally low and deposits are short term in nature to allow banks to support long term lending...” Going by this quote from the article, you may think that miracles will happen to change the situation.

Commercial banks are challenged to go to the people: improve on rural engagement, communicate in the simplest language possible and leave banking jargon for their internal communications.

Skeptics had prophesied a doomsday in banking when the government-supported Umurenge- SACCOs were introduced . Do you imagine what the situation would be if we had waited for commercial banks to address the issue of low financial inclusion? 

Low savings in Rwanda is not because of lack of resources, rather it’s down to a mindset that could be twisted and harnessed in an innovative manner. That we arguably have the lowest interest rates in the region does not in any way make us better. Short term deposits could be twisted and assure customers long-term benefits.

When we are compared to the rest of the region, we lose focus on the global connectivity, hence we are hoodwinked to believe that this is the best that we can achieve.

If in spreading "gospel it meant going beyond hill, valleys and everywhere”, why not banking? Why not thoroughly revisit financial literacy initiatives by commercial banks?

This incessant question of interest rate will not end until a convincing banker stands up there in Serena and convince us that we have exhausted all tools and opportunities at our disposal.

JK