Sunday, April 29, 2012

In Banking Sector what do you understand by '3-6-3 Rule'?

3-6-3 Slang used to refer to an "unofficial rule" under which the banking industry once operated, which alludes to it being noncompetitive and simplistic.
The 3-6-3 rule describes how bankers would give 3% interest on depositors' accounts, lend the depositors money at 6% interest and then be playing golf at 3 pm. This alludes to how a bank's only form of business is lending out money at a higher rate than what it is paying out to its depositors.

No comments:

Post a Comment