Strengthening of profitability As far as bank management goes, risk-based pricing is as important as holding capital to cover risks. Stated another way, it is important to secure lending profit margins. In the business world, it seems quite reasonable for financial institutions to receive interest from borrowing firms based on negotiations and the risks involved.
However, in order to do so, it is quite important for financial institutions to reach an understanding with the borrowers who pay the interest. For example, in the US, many firms ranging from large firms to those with lower credit ratings and medium-sized firms, widely issue corporate bonds to obtain funding, and a resale market for loan assets is in place.