Cost of funds

Cost of funds is a reference to the interest rate paid by financial institutions for the funds that they use in their business. The cost of funds is one of the most important input costs for a financial institution since a lower cost will end up generating better returns when the funds are used for short-term and long-term loans to borrowers—Read more at Investopedia. Kagan, Julia. “Cost of Funds.” 6 May 2019