The optimum leverage level of the banking sector
Banks make profits from the difference between short-term and long-term loan interest rates. To issue loans, banks raise funds from capital markets. Since the long-term loan rate is relatively stable, but short-term interest is usually variable, there is an interest rate risk. Therefore, banks need...
Main Authors: | , , |
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Format: | Article |
Language: | English |
Published: |
MDPI AG
2019
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Subjects: | |
Online Access: | View Fulltext in Publisher |