Category: Bank news

The preparation phase of digital euro starts in November 2023, and European Central Bank will focus on further development of a digital euro. Digital euro (CBDC) would be an electronic payment available free of charge to everyone. Let’s first talk about money in general. From the beginning of human era there was lots of different money that people have used. First money and first monetary system was established in Rome (753BC – 565AD) Evolution of money:  coins (metal, gold, silver, copper etc.),  paper money,  digital money. The history teaches us many things and some of them are and will be written for our future generation. To understand the differences in our technological advancement we need to understand the history how money is created. As many today use paper money and digital…

European economy stagnates rapidly because of high ECB interest rate. From 2013 to 2023 the interest rate has gone up from 0.75 to 4.75 this month. The interest rate of ECB starts to rise concern over euro zone economy. Borrowing cost of loans have sky rocket and many businesses have felt it paying off loans. The inflation has gone up and many business fail to pay their loan. Aa many economists see the risk of investing there are some who see the opportunity and wait for the perfect moment to make profit. ECB’s decision is to hold rates steady as inflation will slow down but all to the detriment of economic development. We had 10 consecutive hikes of interest rates and the ECB decision was to stop hiking interest rates…

As we know U.S. banks keep losing more then 73 billion dollars every month for the last 12 months. Many prediction may scare consumers and many have bean scared already of future banking crises and the rise of the interest rates. It raises serious question about the banking structure and the crisis that’s gone get worse. What's true behind all this is it intentional or incompetence there is no clear answer to this question. Why U.S. banks hold 3.3 trillion in cash and are we expecting a recession in 2024? There are so many open question and there are not a complete answer to all, but it all started with two regional banks Silicon Valley and Signature bank who failed. The reason those two banks have failed is that they…

ESKONT LOAN Short-term loans In the short-term loans include loans that are usually granted to finance the current needs for working premises and means and, above all, companies for trade in goods and the customs clearance of inventories, and other institutions. The deadline for the use of these credits is one year. One of the oldest banking businesses of investing are escount loan. Its use is particularly in payment traffic of goods from other countries. How it works, the eskont credit. Bank buys from its clients a claim against a third party This receivable is purchased before the deadline their maturity because it is so certain commercial forms. The duty of the banks in the new case is that from the moment of purchase until maturity reject interest and costs incurred…

Loans For a loan, usually related, (cash) of an institution, which gives it to use of customers in a certain period of time under certain conditions. Conditions for obtaining the loan can be varied, and it depends on the type of loan you are applying for. We need to know that every loan that we receive from the institution goes along with the attendant interest, which varies on the type of loan. Loans are usually divided into 3 categories: • Short-term • Medium-Term • Long-term Short-term loans In the short-term loans include loans that are usually granted to finance the current needs for working premises and means and, above all, companies for trade in goods and the customs clearance of inventories, and other institutions. The deadline for the use of…

Fundamentals of interest rates What is interest? Interest is the price paid for the use of bank funds. They are mainly monetary funds. If the interest is expressed as a percentage we are talking about the interest rate. What is interest rate? For interest rate we can say that this percentage is paid to the bank because the use of financial resources. The interest rate is expressed in% (percent) and it will be determined based on the type of loan, the repayment period, the competition, inflation and so on. Today we have many ways to calculate interest rates: 1. Nominal interest rate 2. Conformal interest rate 3. Proportionate interest rate 4. Effective interest rate 5. Default interest rate 6. Compound interest rate What is nominal interest rate? This is the…

How banks calculate interest on loans Most people today take loans from banks they do not know a lot about how banks calculated their interest rate and the amount they pay. The purpose of this content is to help the broad masses of people to learn something about conformal and proportional method of calculation of the loan. The fact is that the clients of the bank, paid a high penalty interest rates and they are not aware of that because of the method of calculation. The questions are: How the bank does calculate the interest rate on the loan? Simple and compound interest account Calculation of interest rates is divided in two ways: SIMPLE METHOD - PROPORTIONAL METHOD COMPLEX METHOD - CONFORM METHOD As the very word says is the obvious difference between…

What is NFC? (near field communication) The system of payment without contact is becoming increasingly popular and it speculated that by 2020 half the world's population will used this form of payment. Today, the increasing use of NFC in mobile devices leads to faster and more efficient payments. Smart phones and support for NFC, as well as applications by banks and companies dealing with the development of this technology allows faster and more efficient payment. NFC standard was developed by NXP Semiconductors Company that was founded by Phillips in cooperation with Sony and Nokia Company in 2004. NFC is a wireless communication at a distance of a few centimeters a maximum of 10 cm. What do i need to use NFC services? Transaction and payment is available on mobile devices…

Deposit Insurance (Deposit Insurance Agency) What is the role of Deposit Insurance Agency? The Deposit Insurance Agency of a country has the role that every citizen who has a deposit in the bank guarantees the return of money in the event of bankruptcy or liquidation of the bank. Who is protected? This type of insurance refers to: - Natural persons (residents and non-residents) - Entrepreneurs - Micro legal entities - Small legal entities - Central legal entities The subject of protection? The subject of protection is: - Cash deposit - Savings - Current account deposit - And other money accounts Like all other depositor funds In the event of bankruptcy, who pays money to the depositor? The answer is the bank. The client has to submit a written request for…