What Is Bank Interest Rate. An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed (called the principal sum). The interest rate charged by banks is determined by a number of factors, such as the state of the economy.
All banks face interest rate risk (IRR) and recent indications suggest it is increasing at least modestly.
The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency.
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With so many different commercial lenders out The bottom line. What would negative rates mean for American consumers? It impacts the economy by controlling the money supply.
