Bank services: some reflections on the treatment of default risk and term premium
نویسندگان
چکیده
Financial corporations provide financial services that may be paid for explicitly or implicitly. Explicit financial services are directly observable as charges mainly in association with the acquisition and disposal of financial assets and liabilities or with insurance and pension schemes. However, any complete measurement of the production of financial services has to take account of the value of the services for which financial intermediaries do not charge explicit fees. For instance, the payment for the services provided on loans and deposits (ie financial advice, screening creditworthiness, monitoring the performance of the loan, renegotiating the contract conditions, bookkeeping and payment facilities) is usually bundled with the interest rates charged or paid.
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