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Share prices of listed companies on the New York Stock Exchange plunged to one-tenth their previous levels on average, followed by the shutting down of thousands of commercial banks due to bad loans..
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ByStephen D. Simpson, CFA As mentioned before, banks basically make money by lending money at rates higher than the cost of the money they lend. More specifically, banks collect interest on loans.
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CNBC combed through Wall Street research over the last week to see which stocks analysts say have the best risk-reward. Malpass has also criticized China for taking low-cost loans from the World.
Senior bank loans are often used to provide a business with cash to continue its daily operations. Because loan rates often change monthly or quarterly, interest on a senior bank loan may increase.