Appearance and reality of interest rates

1. The multiplication of money

1.1. Intermediation

1.1.1. The bank serves as an intermediary between those who have excess capital and those who do not. People transfer the risk to the Bank. Interest rates

1.2. Credit risk

1.2.1. It is the risk that the debtors fall behind in the payment of the installments or that they stop paying at all.

1.3. Liquidity risk

1.3.1. The bank faces the risk of not being able to attract the necessary resources to maintain credit operations

2. Interest rates

2.1. Placement rate

2.1.1. Rate at which the bank lends to its clients

2.2. Deposit rate

2.2.1. Rate at which the bank pays you to keep customers' money

2.3. Intermediation

2.3.1. They are the bank's earnings that result from the difference between the placement minus the deposit