December 7, 2022

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Banks, revenues are rising thanks to higher interest rates. But for account holders deposits, the reward remains less than zero

Since anyone with a variable mortgage has to take out a new loan of any kind, and ask for a loan or loan, he will note, The interest to be paid increased And a lot too. This phenomenon is not only Italian but unites a large part of the advanced economies. Central banks stand Raising the cost of money to fight inflation. In the United State The interest to be paid on a thirty-year mortgage is close to 7%i.e. at the highest values ​​since 2002, in Great Britain Mortgage costs have increased on average by more than 40% and the premium is no longer beneficial compared to rents. In the countries of the eurozone, the numbers are slightly lower but not many. Mortgage rates in the eurozone are “A significant increase” In the first six months of the year, on the occasion of “Strongest increase ever in six months“Having hit a record low of 1.3% in September 2021” European Central Bank In its latest economic bulletin.

This condition of high rates Balm for budgets banks. The banking activity itself is actually the borrowing of money from depositors by paying them a certain interest and using this money to make loans. Longer maturities and higher interest rates. This difference, the so-called brokerage margin, guarantees on average 60% of revenue from credit institutions. Once this was the work almost exclusiveto the banks so much that it was customary to summarize the life of bankers into three numbers: 3-6-3. You get deposits by paying 3% interest, you lend money by asking for 6% and at 3 pm you go to play golf. Things have changed Over time and today’s banks do a little of everything. But this remains the heart of the credit industry. The higher the interest set by central banks (which relates to the rates at which banks lend money to each other in the short term but ends up affecting more or less directly all types of loans), The more space the banks have to move between the two values ​​and gain. A few days ago, the Basel Committee, the organization that states that “high interest rates should be so Brokerage revenue supportEstimation by the financial services company Jeffreys on me The first three British banks I feel that Nat West, Lloyd and Barclays It will see its revenue increase between now and 2024 by 12 billion pounds (13.6 billion euros) thanks to increased brokerage margins.

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However, there must be a downside. or The interest that banks pay to those who lend them should also increaseie, account holders. Years of zero interest rates customers may get used to the concept The current account does not result in anything, In fact, it is a cost. If you want to bring some change together, you should do it At least choose deposit accounts For which money is required to be available for a specified period, six months, one year, etc. The longer the client agrees not to withdraw funds, the higher the interest. However, in theory at least, things could start to change and interest rates could rise. In theory, precisely, because almost nothing has moved yet. The Fattoquotidiano.it He consulted the first three Italian banking groups on the matter. the biggest, Intesa San Paolo, replied that “The current account has always been envisioned as a service provided by the bank to meet needs such as payment management, Salary entry, localization of utilities. The customer pays a fixed monthly cost and there is no longer any fee for that either There are other liquidity management tools available“. In short, accept our money almost from the bank We are happy.

Laconic answer Unicredit group: “Because every year we make assessments of the direction of the main financial variables, and if the phenomenon holds, we subsequently determine the most appropriate actions.”. No changes have been decided yet Not even from Bper who answers: “Bper Banca closely monitors the dynamics that have occurred in the financial market in recent months. In this context, Bper defines a series of solutions that will be offered to its clients to invest liquidity at maturity for short and medium term periods. As for the Bonus for deposits on current accounts, At the moment, no decision has been made on any changes.”

After the Italian current accounts lie 1500 billion euros We repeat that banks need to be able to do business with banks and provide loans to business families. petty interest 0.1% It will distribute 1.5 billion euros to account holders in one year, nothing decisive but support for purchasing power It dries quickly and can offset the cost of keeping an account. Financial education will definitely explain that The money must be invested. Assess the risks you are willing to take and the time you wish to deprive yourself of. But in these times huge financial uncertainty (In the past year, stocks, bonds, and government securities all lost their value) Risk-taking investments are a pledge to strong hearts. In the meantime, however, inflation is eating up the real value of money on deposit and The saver is located between the hammer and the anvil.

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Banks, for now, are still playing easy given that The European Central Bank keeps its credit lines open at zero or even negative rates, In essence, it pays the banks to take the money. In theory, these funds should be used to finance investments in the real economy (business loans, mortgages, etc.), in fact until now they have been used by banks in the Eurozone to generate profits mainly by purchasing financial products. A gift from God, so far, continues.