Look at this table:
Source: PR FRIMA
am noting that Italy is the fourth from last place as the number of fixed-rate mortgages in Europe. Together we have Greece, Spain and Portugal. First thought: are all countries of Southern Europe. There may be some correlation in this data?
bank's role in the social system
.
E 'undeniable that it plays a role of paramount importance. Consider, for example, when buying a first house, the bank is a crucial step that is always the path to be able to buy their own homes. hardly no one turns to the bank when you do a transaction.
The social meaning can be expressed in the bank to advise and accompany and help the client in its decisions of life, both as regards the administration of its assets, both as regards the granting of loans to buy goods . For this social role of such great importance, the system degrades when scandals such as Parmalat, Cirio (quoting cases Italian) and the problem of subprime emphasize the presence of distortions in the system. As for the loans it is natural to ask why during the years when rates were at historic lows (
2%) were given adjustable rate mortgages. From personal experience, I know that in some places the vast majority of loans in 2005-2006 was at variable rates, and these were recommended a.
With a fixed rate so low it would be more prudent to recommend fixed rate mortgages, a little more expensive perhaps, but with the security of having a fixed rate regardless of the future conditions market. Some counter-battery
:
"But the banks do adjustable rate mortgages with CAP";
well, what is the CAP?
CAP = Capped Rate
is a product sold in the case of variable rate mortgage with which it defines a maximum rate beyond which the customer does not pay interest to the bank. For the customer a way to protect themselves in case of raising rates, for example, established a maximum rate of 7% if rates were to rise above this threshold, the customer will recognize the bank interest up to the agreed maximum (note the 7 %).
Source
Problem: the threshold of the CAP. If it is too high, this will not help protect customers from rising interest rates (as at the level of 2% could be expected by financial analysts quite inexperienced). If too low, it becomes counterproductive (rightly) for the bank.
The image of the banking system is no getting around it, is debased, dangerous and in bad light. Who can say that I have full confidence in the banking system? In the Italian system is much more important than the relationship established with the people who are inside the branch that confidence in the brand and banking institution.
some time you are trying to "curb" this phenomenon, which is considered harmful for the company, employees fancedo turn at speeds that leave customers bewildered. This is a desired thing: If the employee goes to another bank (and it happens more frequently than you might think) it carries with it the loyal customer and all of its assets. Which is a problem if the customer has a few thousand euro, but it is well worse if we add a few zero.
I think the 'ABI should deal more transparency, honesty and integrity of the work of its members, encouraging healthy competition and severely punishing the banks that violate these guidelines . pruned branches should be dried immediately (or at least, without flourish).
Tiziano
Technorati Tags: Bank
,
Mortgages, Subprime ,
Rate, Interest
, CAP
0 comments:
Post a Comment