Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Bank Interest Rates-Now and Then

By Tyler Subscribe to RSS | January 30th 2012 | Views:
loading
 
  



Interest rates of banks are usually decided by stakeholders and financial personnel present in the industry. Many years ago, banks were owned privately by companies which also determined the interest rate for both lending and saving schemes. There were also instances where banks were family owned enterprises with the aim of making huge profits. In fact, few of the large cities were established just on the basis of a single bank. Thus, banks were considered as the foundation of financial development of a region. However, interest rates were not uniform in all the banks and varied from state to state, with few states having high rates while the others low. The interest rates for various banking aspects were based on many factors like size of the bank, investment of the bank and extent of business involved.

Today bank interest rates are concerned with government which decides how much low or high should the interest be. The involvement of government for controlling bank interest rates is necessary for maintaining economic stability in various states. Otherwise, banks and other financial enterprises can gain control over the entire economy and use it for their own benefit. This is because bank interests can lead to inflation, so they should be controlled to prevent irreparable damage. Hence, government with the help of independent organizations controls the bank interest rates, thereby maintaining stability in the market.

The above explanation can be easily understood with an example. Consider loan interest rates that are mainly under the control of financial planners, so they do not cross the limits. Suppose if this task is left to banks and private companies, then loan interest rates could reach very high that a common man would not even think of borrowing money. Recently, there was a situation where bank interest rates were going on increasing. When the condition seemed worsening, government had to take early action against the rising interest rates. During these times, when average people are in a need of borrowing money, banks can increase their interest rates to large extent. But, because of the presence of government for dealing with the issue, bank interest rates are kept affordable so that taking loans never becomes a problem for the population.

A few years back, there were not many private companies as owners of banks, which restricted banks from spreading. But today, the number of organizations that own the banks is large in number and thus expansion is no more a limitation for banks. As a result, banking has become globalized and banks present in the nation are capable of providing even international transactions. Moreover, interest rates are not a very big concern to the people as well as the banks. This is due to the fact that a single bank has large number of clients, which makes it possible to have low interest rates. In addition to this, all the banks provide same kind of services and products to their customers. This is also the reason behind banks having low interest rates.

Tyler - About Author:
Want to know bank interest rate? Then you just have to click on the link and get all the information about how to calculate interest.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/loans-articles/bank-interest-rates-now-and-then.htm

Related Loans Articles Subscribe to RSS

Instant loan Canada- Financial solution for borrowers!
Published by Aden Jon on March 28th 2012 | Loans
By availing instant loan Canada, borrowers may easily fulfill short-term financial needs. It is help...
 
Personal Loan Company: Accomplish their personal requirement on rate interest loan
Published by Steve Matthew on February 3rd 2012 | Loans
Personal loans company are the most excellent resources of fulfilling the individual wants and one c...
 
Short term loans bad credit- Special loan for bad credit people
Published by Alex Abigil on June 7th 2012 | Loans
In fact, short term loans bad credit is a great fiscal plan especially designed for bad credit peopl...
 
Emergency cash loan bad credit- Cover up unexpected fiscal worries
Published by Thomas Symends on July 23rd 2012 | Loans
By availing quick sum of money via emergency cash loan bad credit, you can get rid of unexpected fis...
 
Same day loans- Quickest loan available in the financial market!
Published by Dalton Erwin on March 28th 2012 | Loans
If you are Australian and want to avail instant money, you can now apply for same day loans to get q...
 
Assistance from expert should be sought for default student loan assistance
Published by Michelsmith on December 8th 2011 | Finance
Defaulting student loans might affect the life of a student in an adverse way. When the situation ge...
 
Bad credit loans- Inexpensive loan available online
Published by Balvin Bart on July 9th 2012 | Loans
By borrowing quick funds with the aid of bad credit loans, you can easily solve any kind of financia...
 
Irish Banks make discussion about mortgage bad bank
Published by John Harry on February 8th 2012 | Loans
There are reports that the banks of Ireland are going to a little low phase are in discussion with t...
 
I need a 6 month loan- Unique form of loan for longer time period
Published by Aldis Roy on May 26th 2012 | Loans
In fact, 6 month loan is helpful for borrowers who want to use money for longer period....
 
Money loan bad credit- Quick money loan with easy repayment option
Published by Kenim Wids on December 20th 2011 | Loans
Even if you have bad credit scores, you can now get instant money with the aid of money loan bad cre...
 
Unsecured debt consolidation loan: Payback all your debts by an individual loan
Published by Alan Poly on May 14th 2012 | Loans
Unsecured debt consolidation loan a economical company proovide some particular services before the ...
 
Unsecured Loans- Free connected tip for acclaim loan individual Unsecured
Published by Alan Poly on December 16th 2011 | Loans
Unsecured loan are connected in order of looking by us or by other such as unsecured loan, unsecured...
 
90 day payday advance- Ultimate cash loan for 90 days
Published by Karen Rase on June 13th 2012 | Loans
If you are borrowing instant funds via 90 day payday advance, it is possible for you to meet unexpec...
 
Need quick Loans- Desire to have a loan of cash currently
Published by Steve Matthew on March 19th 2012 | Loans
Need quick loan have a loan to help for unsecured loan and reassured form the burden of arranging an...
 
Faxless payday advance- Convenient loan available with low interest rates
Published by Andrew Stomes on May 10th 2012 | Loans
By availing instant funds via faxless payday advance, you will achieve fiscal emergencies without an...
 
A contraction in UK bank lending for the first time since 2009
Published by John Harry on March 3rd 2012 | Finance
The contraction in the UK bank lending is for the first time since 2009 while increasing numbers of ...
 
Online installment loans - Quick loan with easy repayment option
Published by Beidhi Ceeper on June 1st 2012 | Loans
By availing online installment loans, one can get instant funds. The funds are useful to meet unexpe...
 
Cash loans- fast and easy loan made for everyone!
Published by Conner Abel on May 23rd 2012 | Loans
By getting cash loans, you have capability to tackle unexpected financial worries with ease!...
 
No teletrack payday loans- the best payday loan for many borrowers
Published by Kenim Wids on April 6th 2012 | Loans
For those salaried persons, no teletrack payday loans are great fiscal support to meet fiscal emerge...
 
500 loan - Meet unfavourable financial problems now!
Published by Rocky Ales on June 4th 2012 | Loans
If you are taking instant funds via 500 loans, it is possible for you to overcome unexpected fiscal ...