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Emergency Money Loan
Mass-market customers are generally price sensitive in terms of annual fees but relatively ignorant about the real level of interest being charged on their rollover balances. A bank may buy credit derivatives even if it has no direct exposure to the underlying company as proxy insurance. Emergency Money Loan. In addition to the spread that banks seekto take account of the term of the loan, banks seek an additional spread to compensate for credit, or default, risk. In some cases these actions may involve actual theft but in other cases it may simply involve the concealment of losses that do not become apparent until a later date. Emergency Money Loan. It is quite common to hear bankers and analysts argue that the Basel Accord requirements also provide an incentive for banks to make housing loans because they are only required to “set aside” 50% of the regulatory capital required for all other loans to support a mortgage. Risks resulting from changes in the price against this factor are referred to as delta risk. Emergency Money Loan.
