Question: 3 - 8 : Why are the largest bank customers able to negotiate loan rates below prime rates of interest? Large customers have the best
: Why are the largest bank customers able to negotiate loan rates below "prime" rates of interest?
Large customers have the best financial ratios in the industry.
Large customers maintain greater compensating balances.
Large customers can borrow in the eurodollar market at LIBOR rates which are often below the prime rat
Loans to large customers have zero default risk.
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