COST OF FUNDS

The interest rate paid by financial institutions for the funds that they deploy in their business. The cost of funds is one of the most important input costs for a financial institution, since a lower cost will generate better returns when the funds are deployed in the form of short-term and long-term loans to borrowers. The spread between the cost of funds and the interest rate charged to borrowers represents one of the main sources of profit for most financial institutions.

For lenders such as banks and credit unions, cost of funds is determined by the interest rate paid to depositors on financial products including savings accounts and time deposits. Although the term cost of funds usually refers to financial institutions, most corporations that rely on borrowing are impacted by the costs they must incur to gain access to capital.

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стоимость ресурсов: стоимость привлеченных денежных институтов для финансового учреждения.

Стоимость финансовых средств, занимаемых банками на главных денежных рынках (топеу market), которая определяет величину процентных ставок при кредитовании ими своих клиентов.