The Bank of England has dropped its base rate. Why does this imply that banks should lend/borrow at lower rates? Does it mean they can lend/borrow at 3% from the bank of england?
Please don’t answer with ignorant anti bank rants.
i am writing thesis of my mba so i need help regarding the lending process what things a bank have to analyze before lending to a borrower,
like credibility
feasibily
i need these in detail.
I’ve read that the major problem that has caused this crisis is because banks aren’t lending anymore.
Is this really the major reason for the escalation of this crisis? Why has it had such an impact on the entire economy?
Is the economy really that reliant on banks lending to each other?