Impact of the interest rates in the economy the banking and financial system
Authors | |
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Year of publication | 2016 |
Type | Article in Proceedings |
Conference | European Financial Systems 2016 |
MU Faculty or unit | |
Citation | |
Field | Economy |
Keywords | Liabilities; Profit; Rates; Risk; Management |
Description | The continued decline of interest rates, pointing to negative interest rates is reflected in the economy, banking and financial sector. The decline in interest rates would itself be a problem for banks such as resources grow in the banking sector. Growth in deposits not only in banking, but in the financial sector, and has its consequent reflection in both the declining risk aversion and the need to create new products and services. The main reason for their creation is the need to secure the necessary amount of profit. Similarly, the decline in risk aversion is also reflected in the design of new products, where risk is transferred to raise immediate profits |
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