How can banks and other institutions afford to give out loans

>>1768533
They have low inflation in Finland. Hard to find places to put their money. You are probably very financially stable. They will margin call you before they lose too much, if anything.

>>1768533
Because they're getting that 50k basically for free. When is the last time you received any significant interest on bank deposits?

>>1768533
The interest rate you receive from the banks is determined by the interest rate the central bank sets, the central bank lends money to regular banks so there is a flow on effect. It's all decided by the board in change of monetary policy at the central bank

>>1768620
>implying central banks are universal

>>1768579
so in the end it's basically subsidized by the government/people/taxes?

why?

>>1768656
That's how fractional reserve banking works

>>1768656
I'm pretty sure they need interest rates that low to keep the consumer economy ticking over at all

>>1768533

I underwrite commercial loans. The main factor in deciding our pricing is our cost of funds. I haven't checked in a while but it was averaging 1.3% a few months ago. Typically we shoot for 3% over the cost of funds but it varies greatly based on the borrower/collateral strength, term length, and overall relationship.

We do liquid collateral secured loans at the 2-3% range but 0.99% means your lender has a very low cost of funds or maybe they're breaking even as a loss leader to gain/maintain the rest of your banking relationship.

>>1768656

>muh free markit

>>1768633
We'll there is in Finland isn't there you fucking retard