THE GROWTH OF THE BANK INTEREST

Edith Mihaela Dobrescu and Emilian M. Dobrescu
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Edith Mihaela Dobrescu: Institute for World Economy, N.I.E.R., Romanian Academy, Bucharest, Romania
Emilian M. Dobrescu: Academy of Scientists, Economic, Legal and Sociological Sciences Section, Romanian Academy, Bucharest, Romania

Journal of Financial and Monetary Economics, 2018, vol. 6, issue 1, 80-83

Abstract: The paper makes a theoretical update of the necessary and current phenomenon of bank interest rates growth by the states of the world and demonstrates the necessity of this phenomenon. Although the economy of world countries has been rising for the past 4-5 years, for some of the poorest countries, the cost of debt has reached the highest level in the last decade. Government treasuries have experienced the impact of falling raw materials exports, and dollar-denominated debt has risen as the US currency has appreciated. At the European Union level, bad loans reached more than 1 trillion (one thousand billion) euros and that is why the situation needs to be remedied more quickly to solve the problem of banks and restore their profitability. Unfortunately, these non-performing loans are concentrated only in a few countries, making the rebalancing process more difficult.

Keywords: Bank of International Settlements; Bank Interest; Federal Reserve of the United States (search for similar items in EconPapers)
JEL-codes: E43 E44 E58 (search for similar items in EconPapers)
Date: 2018
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