Mortgage Rate War and Eroded Earnings – Banks May Stop Deep Discounts

Rate Competition: In a saturated market it is hard to create new opportunities. Lack of new business drove the lenders in the age-old method of attracting new clients – Undercutting. They started to match rates, even worst – banks started to discount their rates even further. Lenders

Read more

Bank of Canada and Current Financial Condition – Underwater Household

Before the crisis, it took only 2% reduction of asset value to wipe out capitals of the international banks – said Mark Carney, Governor of the Bank of Canada. To protect the financial institutions from a similar disaster in future the international authorities have cranked up the

Read more