May 15, 2016
DEMOGRAPHICS IS DESTINY:
Tumbling Interest Rates in Europe Leave Some Banks Owing Money on Loans to Borrowers (PATRICIA KOWSMANN in Lisbon and JEANNETTE NEUMANN in Madrid, April 13, 2015, WSJ)
Tumbling interest rates in Europe have put some banks in an inconceivable position: owing money on loans to borrowers.At least one Spanish bank, Bankinter SA, the country's seventh-largest lender by market value, has been paying some customers interest on mortgages by deducting that amount from the principal the borrower owes.
With a TFR of 1.32, deflation has only begun in Spain.
Posted by Orrin Judd at May 15, 2016 8:09 AM