Nickels and dimes, quarters,
bricks of money, have you ever wondered
where the bank gets its money from
the public, from individuals, from
corporations, from
other banks, and
the use of this money has been,
uh, at higher prices simply
because of the cost of the money has been
considerably higher.
These days. The banking business is dog
eat. Dog banks can try to
negotiate the price they pay for their
money, but there is little to discuss.
And as a result of the banks outlay
for money, each of us pays dearly
for it.
It means that your cost of borrowing are
higher because our cost of purchasing
money are higher in this competitive
market.
And how do you pass that along
to me in terms
of your loan rate?
Uh, basically
the, uh, the requirement
that is needed from the standpoint of the
profits which have been earned
by banks is based to some
degree to a very high degree on the
margin between cost of funds, purchase
and yield on loans that,
uh, that the bank makes.
And in some areas of the country, banks
are putting a minimum on the loans they
will make. They say they can't make
enough money on a loan under eight
hundred dollars, for example.
Could that same thing happen here
in in my area of
this bank, we have not been
put on any kind of a moratorium on home
loans. We're still making
it well, not as many loans
because the demand is somewhat off.
Our business is directly related to the
automobile business.
And that, as you know, it is at
some point, do you see
that kind of thing somewhere down the
road?
Oh, you mean limiting
the loans? It's a possibility.
So from the bankers standpoint, they're
just the middlemen in the inflation sane
and we the consumers are on the short
end.
Linda. Brian, Channel 5 Action
News, Fort Worth.