2013年11月27日星期三

How do banks make benefit by reducing interest rates?

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Hi,


Since the financial crisis in 2008 until now, banks all around the world, have been reducing their interest rates. As I understand this is a policy promoted by central banks in order to push up the growth, particularly at industry.


Well, this may be true, but at the same time, this means that banks become less & less attractive for depositors, that is, those who once, used to put their money in banks and earning money by interests paid for example either monthly or annually.


I can hardly believe that depositors are not important for banks, so my question is: keeping constantly interest rates so low, does not do any harm to the banks given the fact that they may lose customers? And is this situation likely to last for a long time?


Thanks in advance,

How do banks make benefit by reducing interest rates?

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