Today we try to understand what affects the fluctuation of bank lending rates, why we pay additional fees when repaying interest on loans of any additional deductions should consider when insuring their own lives.
Central Bank as a key element of refinancing
refinancing rate - is primarily a tool by which commercial financial institutions are provided with the means of the Central Bank.What is the role of public authority?
Everyone knows that for all monetary policy the central bank is responsible and the purpose of this activity is to ensure the welfare of the country (up to the mark).This is part of the government's long-term strategic policy with regard to the maintenance of a decent strap GDP.
Central Bank has its levers of influence, known mechanisms of action.They are approved by law and are as follows:
- limiting operating rates of commercial banks;
- backup rationing;
- surgery in the open market;
- issuing activity;
- currency regulation;
- refinancing rates of commercial organizations engaged in lending activities.
concept and calculation of the refinancing rate
Since we are talking about the tools of influence of the Central Bank, will focus on the latest and, in its way, the most important of them.The refinancing rate - a measure that is formed with respect to economic and inflationary processes in the country.As a rule, it does not require additional calculations, as it has clearly established factor in a certain period, but more on that later.
Who should understand that it directly affects the availability of credit for the general population.The refinancing rate - this is the value that controls the number of loans in the country.In other words, the lower it is, the greater the likelihood that households can afford to pay a fine, and will charge on loaned funds.
On business rates affect the level of roughly the same way.The lower it is, the greater the working capital can be leveraged to bring in their own business.Because the percentage is quite low.
refinancing and State
So, we realized that the level of this ratio directly affects the well-being of both households and businesses.What is his role for the state?The government, in turn, determines the level of taxes, penalties and interest at the rate of refinancing.In other words, it affects the entire fiscal policy of the state.
Well, since this factor is a general regulator of cash flows, there is a certain relationship as soon as the level of inflation in the country begins to be selected to the ultimate level, the rate, respectively, rises, thereby reducing the amount of borrowed funds at the disposal of the population.
As for the fiscal policy, the regulatory process is much more complicated.
Refinancing your loan and
Consider first the most important duty for all members of the household - PIT.When a normal person takes a loan from a commercial bank, and the time comes to pay the interest, he little thought over what hidden commissions are reimbursed separately.Consider an example.Let's say the interest rate of refinancing at the time the borrowing is set by the state at a rate of 15%, while the Bank provides funds at 11%.The optimum ratio of the creditor, according to the law (Art. 212 of the Tax Code), will amount to 75% of the public service, that is 11.25%.
turns out that the borrower saves on 0.25% of the loan, taking a loan at the bank.From this amount will be deducted from a personal income tax as an additional benefit for.It is usually included in the cost of servicing the loan, and often no one pays them much attention because of their accumulated little.
Refinancing and business
businessmen at the normal operating rate securities (refinancing) can affect only if they are calculated for the purchased goods or services in securities (such as promissory notes or bonds), which were previously purchased by a third party.This provision applies only in cases where goods are subject to the VAT base and the transaction is carried out on the territory of the Russian Federation.
Then the nominal value of the tax will increase the amount of income on securities.This takes into account only that part of the income that exceeds the permissible in the initial calculation, in accordance with the ratio of refinancing.
In this case, the refinancing rate - this is the amount by which your business may suffer.Therefore, if the rate on the acquisition of the bill was higher than at the time of the transaction, the entrepreneur loses.If, on the contrary, the rate rose - he will remain in profit from operations.
refinancing and insurance
In addition, the refinancing rate of the Central Bank has a certain degree of influence on the income of citizens if they insure their lives.How it works?
As an example, take at one time a popular type of insurance - reimbursement of a certain amount of funds for the achievement of a particular age.Suppose the insurer properly make contributions from their own pockets for a few years, and this year the coveted payment arrived.
It is important to understand to what extent the state was represented by the refinancing rate at the time of concluding the insurance contract.If the date of payment of the amount of compensation does not exceed the total indicator of premiums, an increase of treasured factor, then fear anything no reason.If on the contrary, it is a difference you will be required to pay income tax on individuals for the benefit of learning more.
How to change the refinancing rate by year
Over the last decade this ratio is in the range of 7-9%, indicating some stability in the monetary market.Nevertheless, I would like to see a situation where the rate has a direct impact on the behavior of commercial banks.
example, has increased the refinancing rate.In this case, credit unions and other institutions engaged in lending activities, must somehow compensate for the expected drop in demand for their services.It's simple - increase the interest on the provision of funds.
But that's not all.Such factors do not change just like that.Chances are, if it happened, the State is implementing a new fiscal policy to regulate inflation.This means that the new reform will be followed in the form of legal regulatory acts, so the banks will have to adjust their business under the next trends.
Refinancing and capitalism
Consider the situation on the example of countries with developed market economies - the United States.The refinancing rate today plays an important role in the regulation of the fiscal cash flow and the formation of the Federal Reserve.In America, this figure determines the percentage to be paid by a commercial bank in the case of temporary use of public funds.Therefore, if the ratio is not high enough, the commercial system is not threatened, and she can easily perform operations.However, as soon as the rate begins to grow, and the activities of credit institutions is under threat, as the likelihood that they will be able to pay its own obligations, it falls sharply, which subsequently threatens to default.
refinancing rate in Russia
At one time this figure has played a significant role in the regulation of cash flows in the vast country.So, to combat inflationary tendencies in 1992-1996 this ratio reached the level of 99%.
When these flows inherent unhealthy economy was relatively well settled, and the figure was steadily falling.Now commercial financial institutions can easily and at a very adequate percentage to provide both long-term and short-term loans rather (and sometimes even give credit for one night or weekend), without sacrificing either his reputation or the interests of the customers.
Moreover, it should be noted that the refinancing rate to date in the Russian Federation is informative only, which is enshrined in law and has a warranty to January 2016.
