Here’s an interesting chart from Bank of Italy’s Statistical Bulletin:
Italia: Tassi di Interesse sui depositi in Euro (fonte: Supplemento al Bollettino Statistico della Banca d'Italia) / Interest rates on Euro deposits (source: Bank of Italy Statistical Bulletin)
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Grafico storico dei tassi di interesse sui depositi in Italia
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The European Central Bank cut rates, bringing the main refinancing rate at ’1, 50% . This is a move widely expected to support the economy in a context where there are high risks of inflation (which should remain safely within 2% both in 2009 than in 2010) mainly due to contraction of the price of < span style = "font-style: italic;"> commodities .
The question is whether the ECB is moving towards the “ZIRP (Zero Interest Rate Policy), as < a href = "http://www.banknoise.com/2008/12/la-fed-taglia-il-target-fed-funds-rate.html"> has already done the Fed . Actually analysts expect a further cut in the coming months to bring rates around 1% during the spring La BCE porta i tassi al 1,5%
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The Fed made a further substantial rate cut, but this time there are some new features. Firstly, rate has not been defined in a “timely” (ie a specific number) but it was identified a range (specifically, between 0.0% and 0.25% – 1% against the previous year). Already this is an important signal because it indicates that the simple rate target has lost relevance in the economic policy (a position elsewhere in a predictable tendency to “ ZIRP – Zero Interest Rate Policy ).
It also said that despite the Fed Funds Target Rates were previously fixed 1% in previous weeks, the effective rate had already reached the 0,125%, as evidenced by the well-known economist Nouriel Roubini . < br />
This change in policy indicates a willingness to intervene with open market operations, in consequence of the increasingly crowded bailout plan, which at this point also seems to become a central monetary policy. Moreover, however, since the Fed began to pay interest deposited on the banks the Fed Fund may have started to lose some of its meaning in terms of monetary policy.
An interesting aspect is that this situaizione could embarrass funds , that with such low rates may find it difficult to produce profits for investors.
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La FED taglia il target Fed Funds Rate, con una rivoluzione della politica economica
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How the bank calculates the interest payable on a loan? A simple question perhaps, but probably are not many to be clear about how these rates are applied.
So let us shed some light on ‘the argument, the premise that the purpose is not Main exactly mechanism, as an indication that aid what we called” common man “to better understand how the interest on loans work . So for example, because there are changes in the well-known interest in the case of adjustable rate mortgages. Or, because Euribor rose decreased when the mutual trust between banks.
The aspect that deserves to be highlighted is that the interest rate can be decomposed into a series of elements, ranging additions to the rate that the bank then actually apply customer, as highlighted in the figure at the end of the post.
is the rate at which the bank is to lend money, which in turn pays.
Banks and Savings [http://www.banknoise.com]
Com'è che la banca calcola gli interessi da applicare su un prestito?
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As you know, the world’s major central banks cut interest (most of 0.50%). Serve a purpose? Personally, I fear that cutting alone will not solve much (and in fact the bags have still a big loss).
The problem of markets, in fact, still a confidence problem, not liquidity. In other words, fear is widespread credit risk (insolvency) and no settlement (cash, in fact) , and in this cut in interest rates does not touch the underlying problem.
Banks and Savings [http://www.banknoise.com ]
Taglio coordinato dei tassi di interesse in quasi tutto il mondo: servirà a qualcosa?
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In a crisis that can be considered child of “financial innovations”, the Fed has not made a little, the “hidden cut” rates. Indeed, the Fed decided (based on the discretion conferred by the “Paulson plan”) that pay interest on reserves that banks have deposited with it , namely 0.75% for the top share of the compulsory reserves.
In fact, stress analysts, this is equivalent a reduction of official interest rate applied (currently 2%) for banks applying for cash because the remuneration of the reserves should be partially offset.
The idea of fund should be to “harness market liquidity, promoting the provision of liquidity to the system by those persons who are found with a positive balance.
Banks and Savings [http://www.banknoise.com ]
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Webank, the group’s online banking service BPM – Banca Popolare di Milano (one of the first active online banking services in Italy: it works since 1999) has launched a new promotion , which gives new customers who open the account @ me (in fact, account online Webank) a active interest rate of 5% gross until September 30, 2008 . In addition, the bank is also charged stamp duty for the duration of the promotion.
Apart from this peculiarity, it is quite a promotion in line with other Italian market: Santander also has a promotional rate of 5% (remember but Santander is a deposit account and a checking account ), even if the promotion is almost exhausted because that ends March 31, as Barclays, which offers instead a real account , instead offering promotional rate until the end of 2008.
Even when Webank promotion may be extended until the end of the year , if the utilities are domiciled or salary credits to the account. In favor of Webank should also be said that the rate “standard” of 3.90% gross (one of the highest in the market), which becomes the well 4.25% for those who exercised at least 18 stock exchange transactions over a quarter.
A promotion so interesting, although unfortunately Webank has the drawback of imposing fees (0.50 Euro) on credit even if executed via the web. Alternatively, you can also pay standard fee of 18 Euro per year, But however in the event of objections RID (the debits are often used to pay bills or installments) the cost of Euro 0.50 to operation remains.
It is not big money, but believe that the expectations of those who open an account online now is that such operations should be made via the web free , and so it has some ‘feeling that Webank remained a step behind the market, although in reality for many, facts debts accounts, could be a convenient service.
Banks and Savings [http: / / www.banknoise.com ]
Webank: promozione tasso di interesse 5% fino a fine settembre 2008
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Understand what “really” cost mortgage is not always immediate. This is because there are often costs more or less “hidden” or otherwise which are outside the installment “official” costs that often fall into a so-called strategy” Confusopolies “, and aim to make the loan look cheaper than it is in reality .
Fortunately, I must say, that of “hidden costs” is an increasingly common practice , because the Bersani Decree (would) prevent banks to charge the customer a lot of these costs, but we are still far from complete these regulations .
However, is appropriate caution and attention , also found that the mutual could be a “buddy” that we carry around for decades, and therefore to avoid a hasty choice. Compounding the problem for many people is that they are fast financial literacy and maybe the loan is their first significant financial transaction, and then exposed to naivety and mistakes.
It is often believed that the only cost is the repayment of principal plus interest, calculated at annual rate (TAN). Well, actually there may be many other costs, some one-off, others are repeated with each installment, which may distort the values at stake.
one-off expenses
recoverable costs
style=”font-style:italic;”> expenditure management practice
In short, as you can see the costs (and the list is incomplete, because it depends on “creativity” of the bank) can be many. banks participating in the European Code of Conduct provide a prospectus which also show the synthetic index of Cost (ISC), also known as APR (Annual Rate Effective Global), which includes additional expenses in the calculation reeds.
But beware: must carefully monitor such costs were included in the calculation of ISC, because Banks may decide to “leave out” some. For example, ISC can not count in calculating the insurance costs, justified by the fact that insurance is not part of the loan agreement, and the client is free with those who prefer to do it.
Banks and Savings [http://www.banknoise. com ]
Come si calcola il costo di un mutuo? Attenzione alle spese nascoste
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Continuing our small study on the taxation of annuities , it seems interesting to see what happens in Europe. In most EU countries, the income tax system is quite different from the Italian. The two goals that seem to be taken into account by the various laws are quite common among them (and far enough from the present situation is that the Italian proposals to change):
First, before talking of taxation in Europe, let us recapitulate the situation in Italy:
style=”font-style:italic;”> Interests : rate of 10% up to 2,150 pounds, then held 20%
style=”font-style:italic;”> Dividends : threshold of Euro 1525, then withholding 11% style=”font-style:italic;”> Gains: if the transaction exceeds € 15,000 in value, 27%.
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