61. Bank of Japan Gov. Yasuo Matsushita reiterated that the central bank needs to maintain its low rate policy to shore up the moderate recovery. 62. Banks are paying very low rates of interest, charging very high rates of interest, and imposing unconscionably high service fees on consumers. 63. Banks may also rise because those low rates increase their lending margins, or the difference between what they pay to raise money and charge for loans. 64. Banks perform best amid low rates and subdued inflation when demand for loans increases, raising profit. 65. Banks perform best in a climate of low rates and inflation when demand for loans increases, raising bank profits. 66. Banks, which make money by borrowing at low rates and lending at higher ones, were among the gainers. 67. Banks are obliged to lend money at preferential low rates to many state-owned Chinese companies to help them meet their payrolls and reduce the threat of unemployment. 68. Banks borrow short term and lend out long term, so they benefit from low short-term rates. 69. Automakers also gained on the low rate outlook. 70. Banks benefited from the comments, since they have profited from low rates. |