Can anyone tell me why the Ulster Bank has increased it's COF rate during 2011 by exactly .10% every month (12 out of 13) when during the same period both LIBOR and EURIBOR were reduced.
I have a note from the bank telling me that its the banks Margin (hasn't changed) plus 3mth euribor (has fallen) plus a rate to compensate it for the costs of complying with any reserve asset/deposit/liquidity funding requirements.! (up over 1%).
At the outset of the loan this third part was roughly .10%...Now its over 1%. ( a ten times increase).
Can someone tell me if this is legal or justifiable as I know it has happened on a lot of loans and the ulster bank have tried to get me to sign a new facility letter on three occassions over the last year.
If this is justified then does it not say that the Ulster Bank are being deemed by the Markets to be very risky?. What is the point of them using RBS as thier protector and should their COF rate not be similar?
I have a note from the bank telling me that its the banks Margin (hasn't changed) plus 3mth euribor (has fallen) plus a rate to compensate it for the costs of complying with any reserve asset/deposit/liquidity funding requirements.! (up over 1%).
At the outset of the loan this third part was roughly .10%...Now its over 1%. ( a ten times increase).
Can someone tell me if this is legal or justifiable as I know it has happened on a lot of loans and the ulster bank have tried to get me to sign a new facility letter on three occassions over the last year.
If this is justified then does it not say that the Ulster Bank are being deemed by the Markets to be very risky?. What is the point of them using RBS as thier protector and should their COF rate not be similar?