General Bank is a very important issue for all those who have plans to take out a loan. The key issue here is General Bank . This is the interest rate at which banks lend money to each other. Loans on the interbank market have their own individual interest rate, i.e. General Bank. He also assigns his amount to the customer of a given bank, because this interest rate has an impact on the interest rate on our loan.
General Bank – the interest rate at which banks may grant loans to other such institutions.
General Bank rate:
It is usually determined every working day at 11.00 am, based on the declared rate, which is reported by representatives of 13 different banks that participate in the fixing process , i.e. setting General Bank rates . Two highest and two lowest values are rejected from the machine. The initiator and organizer of this activity is the ACI Polska Financial Markets Association. After a quarter of an hour from the publication of General Bank indexes, all banks are obliged to conclude transactions with each other in accordance with pre-determined General Bank values.
The General Bank reference rate is influenced by:
- money supply.
- the level of NBP interest rates
Fixing is also based on setting a series of interest rates regarding:
- ON (overnight) – a one-day loan, starting from the date of its conclusion,
- TN (tomorrow / next) – a one-day loan, starting from the next day, after the transaction,
- SW (spot week) – a weekly loan starting from the second business day after the transaction
- 2 weeks (2W) – two-week loan, starting from the second business day after the transaction
- 1 month (1M) – monthly credit, starting from the second business day after the transaction – (General Bank 1M),
- 3 months (3M) – three-month loan, starting from the second business day after the transaction – (General Bank 3M),
- 6 months (6M) – half-year loan, starting from the second business day after the transaction – (General Bank 6M)
- 9 months (9M) – a nine-month loan, starting from the second business day after the transaction – (General Bank 9M)
- 1 year (1Y) – annual loan, starting from the second business day after the transaction – (General Bank 12M).
General Bank rate and mortgage loan:
Of particular importance is General Bank for mortgage interest rates. It is a component part of the construction of interest on these loans. Then, the General Bank indicator is taken into account, in relation to 3 months (General Bank 3M) .
General Bank value and interest on loans
General Bank is the average interest rate at which banks give each other loans. It is also one of the most important indicators for people who plan to take out a loan. On its basis, the following are calculated: mortgage and investment installments. The loan interest rate consists of a fixed loan margin and General Bank rate, which is updated every 3 months.
If the General Bank rate has increased in this period, then the interest rate on the loan will increase, and if the General Bank rate has fallen, the interest rate on the loan will also decrease. Depending on the bank, the General Bank rate for loans looks a bit different.
Some banks take into account the average General Bank value from a given period, while others only take into account one reading (last or last but one) preceding the beginning of the next interest period.