An Increase in Interest Rates on Loans Outpaces Deposits, Putting Pressure on Borrowers and Potential Delinquency

As was to be expected, banks are passing the rise in interest rates onto loans more quickly than onto deposits. Consumer loans are now granted, on average, at 10.24%, compared to less than 8 points just a year ago. This reflects the tightening of the monetary policy of the European Central Bank, and has as a consequence that clients must make a greater effort to repay what they borrowed. That, in turn, may end up causing an increase in delinquency, although banks are already trying to cover themselves from possible defaults by adjusting the interest they demand to the risk profile of each borrower.

The fact that the types of these loans are increasing should gradually discourage both the requests and the acquiescence of the lenders; unless the financial suffocation suffered by households makes them resort to this formula more and more frequently. Consumer credit, precisely, helps to keep the level of inflation high, which continues to resist giving in clearly to the pressure of the central banks.

Antitrust pressure does have an effect sometimes, even if it seems like it doesn’t.

The pressure from competition agencies does have some effect on the internet giants, even if they sometimes seem untouchable. Amazon’s private labels worked well… because of the privileged place that the firm gave them in the searches on its portal. When regulators began cracking down on the practice, the e-commerce company backed down and began to hide its brands, which stopped selling in as many numbers. Storage costs and so on began to weigh on dwindling revenues. And now that it is reducing costs, it has decided to eliminate a good part of those banners.

The ‘I want and I can’t’ of South Korea to be a global investment pole

The fact that international investors and companies continue to prefer the Chinese city of Shanghai, which has been at the center of loud social conflicts related to the confinements caused by Covid, to Seoul or South Korea in general, should make the authorities of this country, which lives in a want and I can not to reach their full economic potential. The main reasons are the absence of tax incentives and legal uncertainty caused by oral (yes, oral) regulatory guidelines. The chip war offers a new opportunity for it to gain prominence on the global stage, but to do so it will have to adapt more to international standards, which for now continue to be set by the West.

the phrase of the day

“Belarus mainly cooperates with Russia and China, but one must not forget about the technologically advanced West. They are close, they are neighbors and we cannot lose our relationship with the EU”

Alexandr Lukashenko, President of Belarus

Will Barcelona be one of the few that manages to do business with the metaverse?

Fútbol Club Barcelona has become the most advantaged student of Arquímedes playing financial levers, often to the limit of offside. Pulling out different subsidiaries, now NFT, which is in the doldrums, and the metaverse, whose layer was never very high. Will Barça be one of the few entities that know how to exploit this virtual world? The fact is that in the accounts that LaLiga attends so that the clubs can register players, the club will record 120 million euros, which will be paid at some point by a German and a Dutch fund, which acquire a piece of the shares of other two companies, which failed to complete the payments… although their commitment did serve to register footballers a year ago.

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