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How can Rabobank offer higher interest rates than the ECB refi rate?

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06-05-2005 3:23pm

#1

Zaph0d

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3% vs 2%

How does this work?

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#2 07-05-2005 11:02am
Hitchhiker's Guide to...

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they claim its because they are online, and thus have reduced costs.

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#3 07-05-2005 11:09am
Creamy Goodness

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don't quote me on this but i heard that since they don't have shareholders they don't have a dividend to pay out so in turn they use this money to offer higher interest rates

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#4 07-05-2005 9:20pm
7mountpleasant

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ECB is the interbank rate. If you are lending at 3.5 or more (and if you have ever checked out ACC loan rates they ride the farmers then you should be able to make a profit. It is a pretty tight spread but doable. Northern rock is like 2.89 or something and had been for ages.

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