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Third, the return on its marginal lending is above its cost of capital.
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Clearly, not all lending is good lending.
But lending is being throttled.
Lending is slowly picking up.
Mutual lending is another alternative.
Sometimes unsecured lending is optimal.
But, as we know, this negative impact would have been marginal, because banks' desire to lend was already depleted.
The marginal lending rate, paid by banks to borrow from the ECB overnight, was cut from 0.3% to to 0.25%.
Unlike last month, there were no changes to other interest rates, such as the marginal lending facility and deposit facility.
Lending margins are expanding.
Lending margins are high.
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