The stability and profitability of the financial sector in any country is dependent on the interest rates charged on deposits (Turits, 1987). The Cuban Central Bank sets benchmarks for interest rates in accordance with legal distinctions (Ritter, 2004). There is one major element of interest rates. It is the 30 days arrangement for â€˜juridicalâ€™ persons. Currently, the Central Bank has set the interest rate for deposits at an average of 0.5 to 7 pesos per month. A maximum period of 72 months is used as the benchmark (Campbell, 2013). Currently, the countryâ€™s interest rate is at 2.25 percent [see appendix 3] (Campbell, 2013).
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