Bank loans are normally referenced to the Euribor, which is the price at which money is lent in the short term among the large European banks. Day by day they report on the average interest that is applied to each other at different terms. Normally the loans are referenced to the average of the Euribor at a term of one year during the previous month. The price of money is the interest rate that the ECB applies to banks when it lends them money and serves as a control tool for different macroeconomic parameters, including inflation, opening and closing the tap… The ECB has gone up again that price by 0.25%, as declared by its president to contain inflation. And our loans are referenced to the Euribor, not to the ECB’s price of money. The Euribor is not controlled by the ECB, but by the big banks, and the ECB is, in many cases, at risk of what bankers do at times like the present. We see how all the banks are publishing barbaric growth in their profits in the first half of the year and applying the increase in the loan installments of the public without any scruple or blush. Why doesn’t the Government regulate the increases in loan installments that are referenced to the Euribor as soon as possible? Wouldn’t it be the best way for these super bank profits, sometimes record-breaking, to go directly to partly alleviate the unaffordable rise in consumer loan installments?
2023-08-06 09:19:50
#Euribor #price #money
