Sorry Free will, but the bottom line is that all bank customers...

  1. 10,373 Posts.
    lightbulb Created with Sketch. 4
    Sorry Free will, but the bottom line is that all bank customers pay, not just the borrowers.

    The cost of the government guarantee is simply yet another cost added to the cost-of funds, and in turn used to determine the weighted average cost of funds. Add their current targeted margin and then you get the lending rate.
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.