Why Chinese or Russian banks can pay 7-14% interest and US banks can not ?

Rahm

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is not that a common sense that money go where money rewarded ??? Why would money be here and they are punished ???
 
Hmm... sounds like someone is ANTI-capitalistic here.

Two reasons, supply and demand.

The bank doesn't just give whatever it wants, it has competition, and in the end it is just a middleman.

If the interest is higher in Russia, that is because BORROWERS (like when you purchase a home loand) are paying more and that the demand for money/loans is very high.

Basically, there is a high demand for loans/credit but not a ton of savings to back it up. Borrowers have to bid for the savings that there are, and that makes the interest rate go up.
 
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