Commercial Loan Software System for the indexed loans
of the Housing Finance Fund of Iceland to replace the current system.
Calypso customers in Latin America are among the users and dealers of a range of asset classes including interest rate derivatives, settlement and non-settlement currencies, money market indexed loans
, fixed income instruments, FX products and derivatives hedging, the firm said.
Interests should be charged only from declining sum of the loan, while indexed loans
should be prohibited, the National Bank said.
Furthermore, and contrary to the popular view, real interest rates on indexed loans
actually averaged slightly less than those on unindexed debt.
The basis swap provides protection against basis risk from the 91-day T-bill indexed loans
and three-month LIBOR indexed floating-rate notes.
The decline in the net interest margin from the trailing quarter reflected the effect of the Federal Reserve's interest rate reductions on prime-rate indexed loans
, as well as the impact of a higher level of non-performing loans.
Aggressive deposit pricing and the use of interest rate floors on over $360 million of the Corporation's rate prime indexed loans
helped preserve the Corporation's net interest margin.
The decrease in interest and dividend income was due to an increase in non-performing loans and lower yields on indexed loans
(approximately 65% of the Company's loans are indexed to Prime or Libor, although 51% of these loans have interest rate floors of which approximately 75% are now active).
The rating agency noted that French RLGs have already negotiated with banks to progressively exit their EUR/CHF indexed loan
contracts, and have had support from a EUR 1.
Moody's notes that over the past few years, French RLGs have already negotiating with banks to progressively exit their EUR/CHF indexed loan
contracts, as well as have had support from a EUR1.