rates

Until 1989, the BRH determined the fork in which it wished to see evolving/moving the interest rates. In a lawful way, it fixed the maximum rates (ceilings) and minimum (floors) which were to be practised on the deposits and the loans. The beforehand established forks were periodically adjusted to take account of the liquid assets ratios, the inflation and the interest rates abroad. They were generally enough broad not to create serious distortions in the allowance of the credit. However, in period of surliquidity, the minimum rates on the savings deposits and the term deposits became practically inoperative because the trade banks often refused such deposits.

The level of the interest rates inside the forks reflected mainly the position of liquidity of the banks. When those had surpluses of liquidity, the interest rates were close to the minimum; but they could also approach the maximum when the banks were to answer an increase in the application for credit.

The regulation of the interest rates was softened in July 1986. The legal margins between the rates were widened and the lowered interest rates minimum. On the other hand, the fork of the rates on the loans was increased.

The ceilings were eliminated in 1989, and the application of the floors was repealed on February 21, 1992.
 

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