THE IMPORTANCE OF MONEY MARKET INTEREST FORMATION AND ITS ROLE IN CREDIT COST

THE IMPORTANCE OF MONEY MARKET INTEREST FORMATION AND ITS ROLE IN CREDIT COST

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In the contemporary period the place and role of banks in economy is very well defined, they mainly acting as main intermediary in savings-investment relationship, critical relationship to economic growth.Although the current financial crisis demonstrates that the banking system is no longer the foundation of the economic system, yet banks continue to be the most important looney tunes knot on head institutions that intermediate monetary affairs.Through bank credit institutions in our country continues to attract large sums of money from the public and offer banking products and services.

Banking market is dominated both by opening accounts for all the people who do acts of trade, debt collection and debt repayment, and especially the provision of services on product placement credit institutions.Each institution has its own strategy and is constantly concerned about cost sources of credit drawn and placed.This cost is calculated stone calf puller based on the interest rate plus any fees.

This study attempts to make an analysis of how the interest rate is fixed at the products offered by bank to customers.