Social Sciences, asked by KTGmayo, 1 year ago

who sets the interest rate of a bank

Answers

Answered by annu8232
0
On the face of it, figuring out how a bank makes money is a pretty straightforward affair. A bank earns a spread on the funds it lends out from those  it takes in as a deposit. The net interest margin (NIM), which most banks report quarterly, represents this spread, which is simply the difference between what it earns on loans versus what it pays out as interest on deposits.
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