That is because interest rates to your financing will always be higher than interest rates to your deals
A chance price of losing exchangeability and you may interest money might be lower than the price of the latest obligations and the fresh new attention bills. Banks always charge more than it buy exchangeability. That give, or difference in these two costs, 's the bank’s earnings, therefore, the bank’s price of to order currency are nevertheless faster than the rates they sells for. The added exposure and you may duty of brand new financial obligation might do chance prices while making it much harder to invest in future financial support expenditures. So investment the capital expenses which have a secured item in place of with a liability is inexpensive, one another immediately and in tomorrow, since it produces fewer loans and more potential, shorter options costs much less risk. (więcej…)