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| Author: | Braun, H. |
| Title: | Wann die Banken variable Zinsen senken muessen = When banks must lower variable interest rates |
| Journal: | Capital
1992 : DEC, VOL. 31:12, p. 144-145 |
| Index terms: | BANKS INTEREST RATES CONTRACTS MARKET CONDITIONS CREDIT MARKETS |
| Language: | ger |
| Abstract: | A usual experience of debtors in Germany is the fact that banks are very quick to increase the interest rates of credits with variable conditions but they react very hesitantly when market interest rates decrease. However, the law court of Celle laid down the rules which must be taken into consideration in such cases. The 1989 sentence determined that banks must lower interest rates automatically and not only on the insistanct of the clients. The principle which must be adhered to is that difference between the actual market interest rate and contracted interest rate of the credit at the beginning of the terms must be kept during the whole duration time of the credit. |
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