The strong financial system helps in ---------- the spread between banks lending and borrowing rate.
Spreads in Lending
For any business that lends money, the interest rate spread is what the company charges on a loan compared to its cost of money. A bank runs on interest rate spreads, paying a certain rate on savings and CD deposits and making loans at higher rates than it pays to savers.
What is the difference between fair value and intrinsic value?
Intrinsic value is an anticipated value that is based on the fundamental analysis, the amount a rational investor is willing to pay for a security at a given level of risk. This fundamental or intrinsic value is based on discounted value of future cash flows attached with that security.