英国金融学论文:商业银行与小额信贷

这项研究包括分析和理解商业银行,小额信贷及其对利率的影响。根据牛津高级学习者的字典,利率是当你借出钱或者收回投资钱的时候所要偿还的额外的钱。利益基本上是收费资金的借贷,通常作为年度百分率。

 

根据爱康(Americans for Community Co-operation in Other Nations),利率是由借款人向贷款人支付作为使用出借人一段时间钱的交换。

 

银行利息是既作为支出金额来吸引存款也是发放给借款人的财务费用。消费贷款的利息必须由年度成本百分率(APR)来计算。贷款利息也可以包括年费、逾期付款费用,超过限制的费用。利率通常通过每年的资金借贷百分比来传达。利率既可以是固定的也可以是变动的。

 

银行的名称来源于意大利语,是“桌子/台/计数器”的意思。银行接受支付给贷款人或向借款人收取来自不同利率的存款,贷款；来获取利润。银行也从收取服务费用中获取盈利。三大主要类型的银行包括中央银行、商业银行和投资银行。银行也让客户通过电汇,销售处资金电子过户和自动取款机等其他支付方式来进行支付。

 

商业银行利率和小额贷款-Interest Rates On Commercial Bank And Microfinance 

 

The research includes the analyzing and understanding of commercial banks and microfinance and their impacts on interest rates. According to Oxford Advanced Learner’s Dictionary, interest is the extra money that you pay back when you borrow money or that you receive when you invest money. Interest is basically the charge for the borrowing of money, generally conveyed as an annual percentage rate.

 

According to ACCION (Americans for Community Co-operation in Other Nations), Interest rate is the amount paid by a borrower to a lender in exchange for the use of the lender’s money for a certain period of time.

 

Bank interest is on both as an amount paid to attract deposit funds and a finance charge for money loaned to borrowers. interest that is due on consumer loans must be calculated in terms of an Annual Percentage Rate (APR). Interest on loans may as well include annual fees, late payment fees, and over limit charges. Interest rate is ordinarily conveyed as a percentage per annum which is charged on money borrowed or lent. The interest rate may be fixed or variable.

 

The name bank derives from the Italian word banco which means “desk/bench/counter”. Bank accepts deposits and makes loans and derives a profit from the difference in the interest paid to lenders and charged to borrowers. Banks as well make profit from fee charged for services. The three major classes of banks include central banks, commercial banks, and investment banks. Banks also enable customer payments thru other payment methods such as telegraphic transfer, EFTPOS, and ATM.

 

A commercial bank is a type of financial intermediary and a type of bank. Commercial banking is as well known as business banking. It is a bank that provides checking accounts, savings accounts, and money market accounts and that accepts time deposits. Many commercial banks supply trust services, foreign exchange, trade financing, and international banking. Commercial banks provide different types of loans which include secured loans, unsecured loans, and mortgage loans. A commercial bank as a financial institution provides a variety of services that are helpful for business and general purpose. Now a days commercial banks are using microfinance as a part of the institution because of its benefits and the market share its gaining.

 

Microfinance refers to the provision of financial services to low income individuals/clients, also including the self employed. Microfinance loans are generally either interest free or carry interest that does not compound. Furthermore they offer flexible repayment plans. “Microfinance” by its name clearly is about more than just credit, otherwise we should always call it microcredit. Microfinance is most common in the developing world. It started in Bangladesh in the 1970s. The World Bank estimates that more than 500 million people have directly or indirectly benefited from microfinance associated operations. Microfinance provides different varieties of financial services in the developing world. People are moving to microfinance institutions day by day because of their excellent services and repayment future plans. Microfinance identified the problems relating to loans and needs of individuals or groups of a small scale. Microfinance is developing day by day in this developing world and now it is so common that everyone know about microfinance and its benefits. Microfinance has made itself very useful and common for low income clients specially the poor.

 

Today, microfinance is a dynamic sector that offers loans, provides savings and remittance services, and sells insurance to about more than 100 million of the poor. Microfinance companies have increased in complexity and multiplicity in the income levels of the customers they serve. Commercial banks face increasing competition in their traditional retail markets. This is causing margin constrict. It is as well leading forward thinking banks to discover new possible markets that can generate growth in client numbers at acceptable profit margins. As more and more commercial banks become fascinated by the thought of entering the microfinance market, the lessons learned from some of the more experienced players become useful in the decision making process. Commercial banks are investigating for themselves, and some are entering the microfinance market because they see sustainable profit and growth opportunities. Many commercial banks have already identified the business opportunities of microfinance. Commercial banks have now ventured into microfinance in many countries where microfinance is at different stages of development. Some institutions normally meet only a small portion of microcredit demand in the regions they serve. Some microfinance institutions (MFIs) have been able to overcome this situation by gradually turning themselves into commercial banks specialized in microfinance. Banks and financial institutions have been entering the microfinance market in increasing numbers, ensuing in a growing number of formal regulated institutions partially or totally moving into microfinance.

 

The central bank also called monetary authority or reserve bank as well plays an important role. The central bank has been given the authorization to conserve price stability as its primary objective and has been granted liberty from government to make sure that short term Political considerations do not interfere with attaining this objective. Central bank charges interest on the loans made to borrowers, primarily the government and to other commercial banks as it acts as a lender of last resort to the banking sector. Its main responsibilities as well include controlling money supply, subsidized loan interest rates and implementing monetary policy.

 

According to Henry C.K. Liu, “The rate at which the central bank lends money can indeed be chosen at will by the central bank; this is the rate that makes the financial headlines”. Central banks can influence market interest rates and can set rate to a fixed number. The central bank can simply announce its intention to raise or lower the relevant interest rate.

 

The structure of interest rates most frequent or common in an economy is of vital importance for economic decision making. The interest rate structure of the economy of Pakistan primarily consists of rates on banks deposits and lending schemes, yields on government securities such as treasury bills, PIBs and profit rates on national savings schemes, interest rates charged and offered by non-bank financial institutions (NBFIs) and rates of return on term finance certificates (TFCs).

 

Inflation is a general increase in prices as it is when the prices of most goods and services continue to crawl upward. Basically, inflation is a sustained deterioration in the purchasing power of money. Banks try to keep the interest rates on savings accounts equal to the inflation rate. When the inflation rate rises, companies or governments issuing debt instruments would need to attract investors with a higher interest rate. Central governments use the interest rate to control money supply and, accordingly, the inflation rate. It becomes more expensive to borrow money when interest rates are high.

 

Monetary policy is also an important tool. Monetary policy is the procedure by which the central bank, or monetary authority of a country controls the money supply, availability of money, and rate of interest to achieve a set of objectives oriented towards the growth and constancy of the economy. Monetary policy is primarily associated with interest rate and credit. In some countries, the monetary authority may be able to authorize specific interest rates on loans, savings accounts or other financial assets. By raising the interest rate under its control, a monetary authority can contract the money supply, as higher interest rates promote savings and deter borrowing. Both of these effects reduce the size of the money supply. Monetary policy is contrasted with fiscal policy which pertains to government borrowing, spending and taxation. Monetary policy can be of two types as expansionary policy and contractionary policy. Expansionary policy also known as easy monetary policy, used to combat unemployment by lowering interest rates and contractionary policy also known as tight monetary policy, involves raising interest rates to combat inflation.#p#分页标题#e#

 

World Bank also plays an important role. World Bank has come to be used for the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD). Together these organizations provide low interest loans, interest free credit, and grants to developing countries. Basically, World Bank is not a bank. It is one of the United Nations specialized agencies, and is made up of 184 member countries. These countries are jointly responsible for how the institution is financed and how its money is spent. Grant financing and interest free credit comes from IDA which is the world’s largest source of concession assistance. Countries that borrow from the IBRD have more time to refund than if they borrowed from a commercial bank.

 

Literature Review:

 

Banks try to compete with other banks for loans and deposits as Kwangwoo Park and George Pennacchi (January, 2009) emphasize that small single market banks compete with large multi market banks. As large multi market banks are assumed to set retail interest rates across markets therefore loan competition increases and deposit competition decreases in concentrated markets. In context, Isil Erel (May, 2009) concur that bank competition influence banks to reduce the increasing ability of banks lending rates even when money market rates move up therefore the bank interest rates and the changes over time expect to depend on bank competition. Nishant Dass and Massimo Massa (2009) states that banks try to build strong relationship with firms by acquiring information about those firms which they lend to for improving borrowers corporate governance. With this procedure the firms value is affected and in financial markets the standard implications are developed. The fixed interest rate paid to a bank by private firms for industrial investment financing has an essential importance in the economy. When there is stronger loan market competition then larger bank spreads on current account and time deposits and the banks that are under competition they compensate for lowering their deposit rates. In context with that, banks borrow in order to increase their activities, whether lending or investing, and pay interest to clients for this service. Both the levels of bank interest rates and their changes over time are expected to depend on the degree of competition. In concentrated markets, retail lending rates are substantially higher, while deposits rates are lower. Regarding the effect of competition on the way banks adjust their lending and deposit rates, Hannan and Berger (1991) find that deposit rates are significantly more rigid in concentrated markets. Especially in periods of rising monetary policy rates, banks in more consolidated markets tend not to raise their deposit rates.

 

Iris Biefang-Frisancho Mariscal and Peter Howells (2002) state that the role of central bank is reduced to set short term interest rates as central bank indicates commercial banks to keep the price that will make liquidity available as reserve to the banking system. Therefore according to market rates the price increases and decreases. In context with that, banks are required to have a certain percentage of total deposits in the form of either currency or reserves that are the liabilities of the central bank, and hence fully guaranteed. If the monetary policy makers desire to decrease the money supply, they will increase the interest rate, making it more attractive to deposit funds and reduce borrowing from the central bank. On the other hand, if policy makers desire to increase the money supply, they will decrease the interest rate, which makes it more attractive to borrow and spend money. Monetary policy only affects the short-term interest rate. Investment is determined by the long-term interest rate. The difference between long-term and short-term rates is the yield curve. When bond market investors have a different view of the economy from that of the monetary authority, the yield curve may change in ways that offset changes in short-term interest rates. In context, Graeme Guthrie and Julian Wright (2004) concur that the central bank implements monetary policy by targeting short term interest rates to stabilize the money supply in the country. The target rate can be changed when preferred rate and current target rate reach to critical level. According to Jordi Gali, J. David Lopez-Salido and Javier Valles (2004), if monetary policy connects state of economy with future returns then it can avoid inflation rates at reasonable target and if money and debt are imperfect substitutes then for debt limits and participation of households in financial markets, monetary policy may have implications. Furthermore, David E. Rapach and Mark E. Wohar (October, 2005) indicates that inflation rates and real interest rates often together increase and decrease as government changes. Therefore the change in monetary policy is an important source of changing in real interest rates. In context with that, monetary policy only affects the nominal interest rate, which is not adjusted for inflation. The real interest rate is the difference between the nominal interest rate and expected inflation. Monetary policy operates by influencing the price of money, i.e. the cost of borrowing and the income from saving.

 

Isil Erel (2009) emphasize that loan spreads can be increased or decreased by bank mergers as the increased market power outbalances the efficiency. A merger can take place for either expansionary reasons or contractionary reasons. Mergers allow firms to expand to take advantages of increases in scope often increase the asset base through capital investment. High spreads frequently lead to high inflation rates and lack of competition and with that consumer price index is affected. Higher inflation increases risk and therefore banks charge a higher lending price that increases the interest rate spreads. In context, inflation is caused by too much money chasing too few goods or too much demand for too little supply, which causes prices to increase. The higher the rate of inflation, the more interest rates are likely to rise. This occurs because lenders will demand higher interest rates as compensation for the decrease in the purchasing power of the money they will be repaid in the future. Patrick Gagliardini, Paolo Porchia, and Fabio Trojani (October, 2009) states that the purchasing power of money loses during inflationary periods and with that each unit of currency is affected. If more money is available than needed to accommodate normal growth then consumers and businesses try to purchase more goods and services to produce with current resources causing upward pressure on prices and the market does not have time to adjust other prices downward in response therefore a short term increase in overall prices takes place. Changes in inflation rate cause corresponding changes in interest rates as inflation affects the value of lenders money therefore the interest rate increases to compensate the loss. According to David E. Rapach and Mark E. Wohar (2005), for controlling inflation, monetary policy has been chosen as the primary tool as its goal is to reduce the inflation. Inflation changes unpredictably and it can interrupt the economy which cause uncertainty in financial decisions. James D. Hamilton and Òscar Jordà (October, 2002) emphasize that Federal Reserve determines the level of the federal funds rate target, one of the most publicized and anticipated economic indicators in the financial world and the Federal Reserve targets only rates in the federal funds market. In context with that, when the Federal Reserve wants to reduce interest rates, it makes short term loans to banks in what is known as the Federal Funds market. The banks turn around and lend money to private investors, at a profit. The lending process has the effect of increasing the amount of money that is in circulation. When the Fed increases the federal funds rate, it becomes more expensive for banks to borrow money from the Fed. The Fed will lower short term rates when the economy is slowing as lowering rates makes it less expensive to borrow money and consumers and businesses can afford to buy more products and services.

 

Amit Bubna and Bhagwan Chowdhry (2010) concur that banks profit from the difference between the interest it pays for deposits and the interest it charges through lending. When the economy is growing, short term rates are raised to keep the economy from building too fast and risking inflation and raising interest rates slows the economy. Higher interest rates mean higher borrowing costs for individuals and businesses and that means there is less money to spend somewhere else.