Bank Rules to Cause ‘Modest’ Interest Rate Rise, IMF Says
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New financial regulations will cause a “modest” increase in the interest rates banks charge on loans in developed countries as lenders reduce costs, according to a study by International Monetary Fund staff.
Higher capital and liquidity requirements will boost average bank lending rates in the long term by 28 basis points in the U.S., 18 basis points in Europe and eight basis points in Japan, according to the study published today.