The average long-term borrowing interest rates among smaller banks are at 7.3-7.4% per year, about 1% higher than at big banks.
Banks explain that as the year's end draws near, businesses need more capital for their projects, so borrowing interest rates have to be raised. This ensures that banks have enough money to lend out. Businesses are concerned, as they worry they may have to borrow money at higher rates. This is unlikely to happen, according to experts, because banks are competing in borrowing interest rates and inflation is still low.
