Sentences with phrase «banks borrow at lower rates»

The biggest banks borrow at lower rates than smaller rivals because creditors assume — like Dodge said — that governments always will rescue any institution that is «too big to fail.»

Not exact matches

The case for lower interest rates is weaker, but most forecasters still expect the Bank of Canada will wait at least a year to raise borrowing costs.

October 22: President Obama unveils a program to help small businesses borrow money, by allowing small banks to borrow funds at low rates from the Troubled Asset Relief Program (TARP).

Bernanke publicly acknowledged this week a policy conflict with the Treasury over its move to lock in low borrowing costs, which is working at odds with the central bank's efforts to lower long - term interest rates.

Whereas in most markets an increase in short - selling puts pressure on the lending market and pushes up the interest rate at which short - sellers can borrow the underlying stock, the ready supply of gold loans from central banks seeking to earn some return on their gold holdings has, until recently, helped to keep lease rates low, generally in the range of 1 — 2 per cent (Graph B3).

Although I don't pretend to understand all the «ins & outs» of banking, public financing, etc., it seems to me to be self - evident that if Canadian governments at all levels were able to borrow, at low or preferably no interest rates, to finance infrastructure projects and other issues such as health care and education, rather than indebting Canadians in perpetuity in order to pay big interest payments to the greedy Big Banks, it would ultimately be in the best interests of most ordinary Canadians.

If banks are able to borrow at a lower rate, they're more likely to lend to small businesses and consumers, spurring growth.

The banks are trying to win back their losses by arbitrage operations, borrowing from the Fed at a low interest rate and lending at a higher one, and gambling on options and derivatives.

In situations like this you will be able to borrow money at a lower rate than you could get from any of the financial lending institutions and the person lending you the money could also get a better return than they would get by investing their money in those same institutions or at the bank.

So, depending on whether your assets are in cash or securities, you can still access «cash» for real world purposes the same way you would at a bank, but at substantially lower borrowing rates (if need be) and with the ability to earn interest on idle cash (i.e. the dry powder).

As expected, the Bank of Canada announced that they will continue to keep borrowing costs low, maintaing its trendsetting overnight rate at a 1 percent low.

It's a simple concept where one borrows at a lower rate, and lends at a higher rate, just like any bank would do.

The Fed can keep the Fed funds rate low, but aside from the strongest borrowers, the yields that lesser borrowers borrow at are high, and reflect the intrinsic risk of loss, not the temporary provision of cheap capital to banks and other strong borrowers.

So, when I see arguments that say, «Let the banks in trouble borrow at low rates.

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When the aforementioned funds rate is held low, banks have more money they can readily lend and consumers can borrow at lower interest costs.

With all the options available for business borrowing today, a term loan could be a good fit for those businesses that meet the banks» criteria because a term loan at the bank will often include the lowest interest rates.

If the same economic scenario were presented but interest rates were low, banks may feel that taking the risk in loaning to less - than - impeccable businesses is worth it, particularly since they could also borrow money from the central bank at extremely low rates.

If one borrows a capital outlay of X, the cost of X will be less than a capital outlay of 6X, but if a central bank maintains interest rates at the artificially low X level, there can be no loans for capital outlays between X and 6X.

For example, buying whole life or universal life with values at a young age can save you money since you will build investments that you can borrow from more easily than a bank when the time comes to start a business or a family, and you can also benefit from a lower rate by locking in a policy while you are in good health and have no problem passing the life insurance medical exam.

You also have the option to borrow against the cash value accumulation of the policy at a lower rate than you would get at a bank.