Scholarly record

STUDY REGARDING THE INTEREST RATES PRACTICED BY THE CREDIT INSTITUTIONS AND THEIR ROLE IN THE BANKING ACTIVITY

C. Sirbulescu, L. Pirvulescu, I. Iosim, R. Gherman, T. Iancu

Abstract

The paper presents the significant aspects of the interest rate, considering that it performs an important function in the banking system. Taking in the consideration that money represents the blood that supplies the system, the interest constitutes the way in which it develops. The interest rate is the main item in relation to which the interest is calculated. There are presented and analyzed the interest rates charged by the credit institutions at: term deposits in lei, term deposits in euros, deposits in lei on types of deposits, deposits in euro on types of deposits, credits in lei, euro-denominated loans, loans in lei on types of loans, loans in euros on the types of loans. The methods used by the authors of the paper consisted in the gathering of information, documentary analysis, graphical representation, classification, analysis. It is proved that the saving process has positive effects on the development of the bank's activity and is directly related to the increase of the attracted resources, their diversification, but also the improvement of the structure towards the increase of its resources. By pursuing their own interests, banks can orientate the development of activities, create new consumption and savings patterns at the level of society, all closely related to the function of mediating between those who have resources and those who need them in that moment. It is also demonstrated that the lending process is the main source of financing for a country's economy, credit types being various according to market requirements. Bank deposits are created by those who want to save money, and those who plan to access credit, think carefully ahead and do not borrow more than they think they can repay without problems. Concluding, by accessing a credit, the benefits must appear on both sides, both for the bank, through the expansion and diversification of the loan portfolio, additional profit, but also for the client through business development, profitability and repayment of debts to the bank, as a result of the credit obtained. Commercial banks should also provide depositors with higher interest rates for savings

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