2  Rates on outstanding loans to non-financial corporations over 1 and up to 5 years. Respectively from 3.8% to 3.55% and 5.2% to 5.03%. Source: ECB. 3  Van Wijnbergen, S., and Homar, T. (2013), “Recessions after Systemic Banking Crises: Does It Matter How Governments Intervene?”, Duisenberg school of finance - Tinbergen Institute Discussion Paper.
Banks, financial institutions and other market players too need to be literate about their risk and return framework. Every bank, in order to expand its customer base, needs to understand the requirements of its customers, the market, credit and operational risks involved and returns to be achieved.