On: First-Time Buyer Lorenz Curves (2020)

[danuker]

Do banks actually take any interest rate risk? In Romania, there are a few offering a fixed interest rate.

[vishnugupta → danuker]

In India the fixed rate is about 2-3% above the prevailing rate (I.e., 12-13% as opposed to 10%) so they kind of pass in that risk to the borrower.

Also here, “fixed” means that the rate is subject to change at fixed intervals as opposed to whenever the central bank changes the prevailing interest rate.