To do so, banks first need to attract new borrowers, so they have an incentive to pass on the lower cost of funding offered by the TFF to those borrowers.
This was clearly evident in the  mortgage market, where banks have competed for new high-quality borrowers with a reduction in rates, as well as offers of cash back to borrowers for refinancing an existing loan previously held with another lender. Moreover, banks announced sizeable declines in interest rates on fixed rate business and housing loans shortly after our package of measures was announced.