The Credit Activities of the Bank and the Formation of Interest Rates
Journal Title: Бізнес Інформ - Year 2016, Vol 5, Issue
Abstract
The paper reveals the essence of the interest rate, which is a certain amount paid to the creditor (the banking institution) by the borrower for the temporary use of credit resources. There have been identified and summarizes the main types of interest rates on credits used in banking practice. In the course of the study it was determined that the formation of the interest rate is a multi-factorial process. It is demonstrated that the given process is defined by a number of factors, which can be arbitrarily divided into two groups: macro- and microeconomic. It has been proved that the main factor affecting the level of the interest rate is the cost of attracting by the bank credit funds (usually the amounts of deposit rates). On the basis of the conducted research there has been proposed a number of directions to improve the process of crediting the bank borrowers in view of existing risks.
Authors and Affiliations
Maryna Volvenkova
Keywords
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