L’Amour, Love, Amor

The Cultural Nuances of Expressing Love in French, English, and Spanish

L’Amour, Love, Amor: The Cultural Nuances of Expressing Love in French, English, and Spanishuage is more than words; it’s a window into the soul of a culture, revealing how people perceive and express universal experiences like love. Take the phrase “L’amour, c’est une totale décomposition de la vérité” (“Love is a total deconstruction of the truth”). It’s a poetic and philosophical reflection, but its meaning shifts subtly depending on the language and the cultural context in which it’s expressed.

The French Perspective: L’Amour et la Philosophie

In French culture, love often intertwines with intellectual depth and existential musings. The original phrase, “L’amour, c’est une totale décomposition de la vérité,” reflects the French penchant for dissecting emotions with a poetic and philosophical lens. Here, love is portrayed as a force that dismantles the constructs of logic and reason—a raw, transformative experience.

For the French, this deconstruction is not a loss but a discovery. It’s the unveiling of vulnerability and authenticity, a journey through chaos to something profoundly human. The phrase invites reflection, aligning with France’s literary and artistic traditions that celebrate the complexity of love as both beautiful and challenging.

The English Perspective: Love as an Introspective Truth

In English-speaking cultures, particularly among White Anglo-Saxon Protestants (WASPs) in the United States, love is often approached with a balance of emotional vulnerability and individual introspection. The translation, “Love is a total deconstruction of the truth,” retains the idea of unraveling certainties but presents it more as a personal, internal process rather than a collective or existential one.

The tone is introspective, resonating with the Anglo-American emphasis on self-discovery and personal growth. Love, in this context, is seen as a journey where individuals confront their truths, question their beliefs, and emerge with a clearer understanding of themselves. It’s less about chaos and more about transformation within boundaries.

The Spanish Perspective: Amor y Pasión

In Latin America, love is rarely seen as a detached intellectual exercise. It’s fire, passion, and life itself. The reimagined Spanish version, “El amor es una descomposición total de la verdad, pero también una explosión de vida,” captures this spirit. Here, the deconstruction of truth is not a cold unraveling but a fiery process of surrender and rebirth.

For many Latinos, love is lived loudly and unapologetically. It’s the ultimate act of giving oneself completely, a tumultuous yet beautiful force that cannot be constrained by logic. The addition of “una explosión de vida” reflects the Latin view of love as both chaotic and affirming, a whirlwind that simultaneously consumes and uplifts.

Comparing the Three Perspectives

The differences in how this phrase is expressed and understood highlight the cultural nuances of love:

1. French: Intellectual, philosophical, and introspective. Love is a journey through chaos to uncover deeper truths.
2. English: Balanced, introspective, and self-focused. Love is about personal growth and emotional honesty.
3. Spanish: Passionate, intense, and life-affirming. Love is a consuming force that ignites the soul.

Each culture’s lens shapes how love is framed, showing us that while love is universal, its expression is profoundly shaped by the context in which it exists. From the poetic musings of the French to the introspective reflections of English speakers and the fiery passion of Latin America, love speaks in many tongues, each with its own unique melody.

Language shapes not only what we say but how we feel. These cultural differences remind us of the beauty in diversity and the power of words to capture the essence of one of humanity’s most profound experiences. Whether you express it as amour, love, or amor, the heart of it remains the same—a force that defies explanation yet defines us all.

What do you think? How does your culture influence the way you see and express love? Share your thoughts below! ❤️

The Kamala Harris BIG PROBLEMA…

In politics, the idea of change is one of the most compelling promises a candidate can make. Voters often yearn for something new—new policies, new ideas, and new approaches to governance. But what happens when a candidate who is part of the running government steps forward and presents themselves as the person of change? It seems paradoxical: how can someone embedded in the current system, or even a key player within it, credibly claim to be the force that will disrupt the status quo?

The answer lies in strategy, messaging, and an ability to capitalize on both insider knowledge and the hunger for reform. Here’s how these candidates often present themselves as the harbingers of change, despite their government ties.

1. Distancing Themselves from the Status Quo

A common approach for candidates from the current government is to subtly or overtly distance themselves from the existing leadership. They walk a delicate line between acknowledging the achievements of the administration they served under and pointing out its failures. They may say something like, “While we’ve made strides, there are still areas where we’ve fallen short. I am here to fix what hasn’t worked.”

By doing this, they frame themselves as reformers rather than defenders of the status quo. The message is clear: I have the experience, but I am not bound by the mistakes of my predecessors. This position allows them to simultaneously benefit from their insider status while claiming they are the fresh start the country needs.

2. Proposing New Priorities

One of the most effective ways to distance oneself from an incumbent government is to highlight new and different priorities. Even if they were part of the old system, a candidate can position themselves as an advocate for policies that were previously overlooked. They might focus on issues like corruption, climate change, or social inequality that weren’t at the forefront of the current administration’s agenda.

This shift in focus allows them to demonstrate a break with the past, suggesting that they are the best-equipped to lead the country into the future with a renewed focus on what truly matters.

3. Leveraging Insider Knowledge for Efficient Change

Unlike an outsider candidate who may lack the experience to navigate governmental red tape, a candidate who has been part of the government can claim to know the system inside out. They can argue that their knowledge of the government’s inner workings gives them an advantage in implementing swift and meaningful change.

The message is: I’ve seen what goes wrong from the inside, and that’s exactly why I know how to fix it. By portraying themselves as experienced insiders with a reformist agenda, they can blend familiarity with a promise of innovation.

4. A New Leadership Style

Sometimes, the promise of change isn’t about policies but about leadership style. Candidates in this position often argue that while the current policies may have been well-intentioned, the leadership style or strategy for implementation is outdated or ineffective.

Perhaps the current leadership is seen as too authoritarian, aloof, or opaque. A government insider can highlight how they will bring transparency, inclusivity, and modern governance techniques into play. By championing these values, they signal a change not in substance but in the approach.

For instance, emphasizing transparency, citizen engagement, and participatory governance suggests a shift towards more democratic, people-centered politics—even if the underlying policies remain largely the same.

5. Emphasizing Personal Integrity or Competence

Another key tactic is for candidates to position themselves as uniquely capable of achieving real change due to their personal traits. They can highlight their personal record within the government, focusing on integrity, results, and achievements in their previous roles. They might say, Yes, I was part of the administration, but I always pushed for reform.

By foregrounding their own clean record, competence, and reputation for getting things done, they can make the case that while the government may have faltered, they were a positive force all along, one that will now bring their vision to full fruition.

6. Building a New Coalition

Another way for government insiders to differentiate themselves from the current regime is by creating a broad coalition that includes voices from outside the administration. By aligning themselves with fresh faces—whether they are community leaders, activists, or private sector innovators—they send a clear signal that they aren’t just more of the same.

This method is particularly effective because it visually demonstrates change. A new team or coalition suggests new perspectives and ideas, helping to solidify their status as someone who will break from the past while still knowing how to navigate the system.

7. Harnessing the Idea of Continuity with Reform

A government insider can also capitalize on the idea of continuity with reform. This strategy appeals to voters who want stability but also feel that certain changes are necessary. By positioning themselves as the person who can provide continuity, they reduce the anxiety voters might feel about an entirely new administration, while still promising important reforms.

For example, they might argue that completely upending the system would cause chaos, but making targeted reforms will allow the country to move forward in a more efficient and effective way. This balance between familiarity and innovation can be compelling for voters who want change but are wary of too much disruption

Walking the Tightrope Between Experience and Innovation

In sum, a candidate from the current government can represent themselves as the person of change by carefully positioning themselves as both an insider and an outsider. They emphasize their insider knowledge while promoting a new set of priorities, leadership styles, or personal attributes that differentiate them from the current administration. By building new coalitions and promising targeted reforms rather than complete upheaval, they walk the tightrope between experience and innovation.

This nuanced approach allows these candidates to present themselves as the best of both worlds: familiar with the system, yet committed to meaningful change.

REVENGE : an eye for an eye, while primal and instinctive, often leads to destructive outcomes that reduce individuals, groups, and nations to the same level of barbarity as the original act of aggression. In seeking to right a wrong through revenge, people often perpetuate violence rather than achieving resolution or justice.

Here are some examples so we can illustrate and learn from the past how revenge manifests and how it can reduce individuals, groups, or even nations to the same level of barbarism as the original act of aggression:

1. Psychological Example: The Cycle of Abuse

In psychology, revenge is often seen as part of a vicious cycle of abuse. For instance, children who grow up in abusive households may develop deep-seated desires for revenge against their abusers. However, when these individuals act on those urges, they can perpetuate the cycle of violence, sometimes even becoming abusers themselves. This “revenge” doesn’t end the pain but instead creates new victims, often leading the person seeking vengeance to mirror the very acts they once condemned. In this way, seeking revenge can pull individuals down to the level of those who wronged them, keeping them locked in a primal, destructive loop.

2. Historical Example: The Punic Wars

A powerful historical example is the rivalry between Rome and Carthage during the Punic Wars. After Carthage was defeated in the Second Punic War, Rome exacted devastating revenge during the Third Punic War, utterly destroying the city of Carthage, killing or enslaving its people, and salting the earth to ensure it would never rise again. Rome’s relentless pursuit of vengeance brought the empire to the same level of brutality as the perceived aggressions of Carthage, illustrating how revenge can escalate to barbarism and annihilation, rather than achieving justice or peace.

3. Literary Example: “Moby Dick” by Herman Melville

In literature, revenge is often depicted as a consuming and ultimately self-destructive force. In Herman Melville’s Moby Dick, Captain Ahab’s obsession with exacting revenge on the whale that maimed him leads to his demise. His relentless pursuit of the whale draws not only himself but also his crew into destruction. Ahab’s revenge turns him into a figure as monstrous and dangerous as the whale itself, highlighting how revenge can dehumanize and drag individuals into moral darkness.

4. Political Example: The Rwandan Genocide

On a national level, the Rwandan Genocide serves as a tragic example of revenge spiraling into mass atrocity. Historical ethnic tensions between the Hutus and Tutsis erupted into one of the most horrific genocides in modern history, partly fueled by revenge for previous grievances and power struggles. The cycle of violence that unfolded shows how entire populations can be drawn into barbarism as revenge fuels hatred and retaliation. Here, seeking revenge on a mass scale led both perpetrators and victims to a level of violence and cruelty that obliterated any moral high ground.

5. Cultural Example: The Hatfields and McCoys Feud

In American folklore, the Hatfields and McCoys feud is a well-known example of revenge spiraling out of control. The conflict, which began over perceived slights and escalating acts of aggression, dragged both families into a decades-long series of retaliatory killings. The pursuit of revenge reduced both sides to lawlessness and violence, demonstrating how primitive the impulse for revenge can be when it becomes deeply embedded in cultural identity. Rather than resolving conflicts, revenge deepened the divide and perpetuated suffering on both sides.

But this are more recent examples, let’s go to the oldest ones :

These larger historical examples are powerful illustrations of how cycles of revenge, conquest, and retribution can shape entire societies over centuries. They highlight how the drive for revenge or domination can reduce nations to the same level of barbarism as their aggressors and have long-lasting, often tragic consequences.

1. The Arab Invasion of Spain (711-1492 CE)

The Arab (or Moorish) invasion of Spain in 711 CE is a classic example of a long-lasting conflict driven by conquest, retribution, and the desire for control. The Moors, who were largely Muslim, conquered large portions of the Iberian Peninsula, establishing a foothold in Europe that lasted nearly 800 years. This long period of conflict and rule came to an end with the Reconquista, a retaliatory effort by Christian Spaniards to reclaim the land. In their quest for revenge and religious purity, the Spaniards expelled or forcibly converted Muslims and Jews through brutal means, culminating in the Spanish Inquisition.

While the original act of aggression came from the Moors’ invasion, the Spanish response over centuries reflects how revenge and retribution can become national projects, reducing both sides to cycles of barbarism, forced conversions, massacres, and the eradication of cultures. The desire to reclaim Spain led to harsh persecution, which became a dark chapter in Spain’s history.

2. The Spanish Conquest of the Americas

The Spanish conquest of the Americas can be seen as an extension of this cycle of violence and revenge. After successfully driving the Moors out of Spain, Spanish conquistadors, emboldened by their religious zeal and imperial ambitions, turned to the New World. Figures like Hernán Cortés and Francisco Pizarro inflicted massive destruction on indigenous populations in their quest for wealth and power. The Spaniards replicated many of the brutal tactics used during the Reconquista in their treatment of the indigenous peoples of the Americas, including slavery, forced religious conversions, and mass killings.

The conquest of the Americas was, in some ways, Spain projecting its historical experience of subjugation and revenge onto a new context. In this case, the Spanish not only mirrored the violence they had suffered under Moorish rule but took it even further by completely eradicating entire civilizations, such as the Aztec and Inca Empires. The Spanish response to the indigenous people reflected the same ruthless drive for domination and retribution, ultimately leading to centuries of suffering and exploitation.

3. The Governor of Hispaniola and the Massacre of the Caribs

The story of the massacre of the indigenous Carib peoples under Spanish colonial rule in Hispaniola (modern-day Dominican Republic and Haiti) is another example of revenge and domination spiraling out of control. In the early years of Spanish colonization, the Carib peoples were seen as fierce and resistant to Spanish rule. The Spanish governor, in retaliation for their resistance and the threat they posed, ordered their systematic extermination. However, the massacre proved to be not only barbaric but economically costly.

In the aftermath of the decimation of the native populations, the Spanish were left with a labor shortage. This shortage led to the forced importation of enslaved Africans to work on plantations and in mines. The consequences of this cycle of violence, extermination, and slavery continue to reverberate throughout the Caribbean and the Americas today. The forced displacement of Africans set the stage for racial and social inequalities that persist across the Western Hemisphere, including the lasting impacts of racism and the legacy of colonial exploitation in North America, Central America, South America, and the Caribbean.

4. The Transatlantic Slave Trade and Its Consequences

The transatlantic slave trade, partly a result of Spain’s brutal conquest and colonization efforts, is one of the most tragic examples of how cycles of conquest and revenge can lead to barbarism on an unimaginable scale. As the European colonial powers (Spain, Portugal, Britain, and others) continued to colonize the Americas, they sought to maintain control over these vast territories by exploiting enslaved African labor. The violence inflicted on indigenous peoples by European conquerors was mirrored in the brutal treatment of African slaves.

This drive for economic dominance through the exploitation of human beings led to centuries of suffering, displacement, and social upheaval. The consequences of the transatlantic slave trade are still evident today in the systemic racial inequalities present in both the Americas and Europe. Entire societies were shaped by this cycle of violence and exploitation, creating deep divisions that remain difficult to overcome.

These historical examples reflect how cycles of revenge and domination often lead to even greater barbarism than the original acts of aggression. In seeking retribution or domination, individuals, groups, and nations frequently perpetuate cycles of violence that leave lasting scars on societies. Whether through the Arab conquest of Spain, the Spanish conquest of the Americas, or the horrific consequences of the transatlantic slave trade, the primal drive for revenge can escalate into centuries of exploitation, repression, and suffering. These legacies continue to shape modern societies, reminding us that while revenge may be primal, its consequences can be devastating and far-reaching.

The assassination of Muammar Gaddafi, the former leader of Libya, in 2011 sparked widespread speculation about the motives behind his death. While political factors certainly played a role, it is essential to understand the socio-economic policies implemented by Gaddafi’s regime. This article aims to shed light on some of the initiatives introduced during Gaddafi’s rule and provide a balanced perspective on their implications for the Libyan population.

1. Free Electricity for All:
Under Gaddafi’s leadership, Libya provided free electricity to its citizens, eliminating the burden of electricity bills. This policy aimed to enhance the living standards of the population and alleviate financial pressures.

2. Interest-Free Loans:
In line with the state-owned banking system, Gaddafi abolished interest rates on loans, ensuring that citizens were not burdened by excessive debt. This initiative aimed to promote economic stability and empower individuals to pursue entrepreneurial ventures without the fear of high interest rates.

3. Housing for All:
Gaddafi pledged that he would not buy a house for his parents until every Libyan owned a home. This commitment to housing provision aimed to address the housing shortage in the country and ensure that every citizen had access to decent accommodation.

4. Support for Newlyweds:
Newly married couples in Libya received financial support from the government, enabling them to purchase their own apartments and start their families. This initiative aimed to encourage family formation and support the establishment of stable households.

5. Education and Healthcare:
During Gaddafi’s reign, education and medical treatment were provided free of charge to all citizens. This resulted in a significant increase in literacy rates, with 83% of the population becoming literate compared to the previous 25%. Similarly, accessible healthcare contributed to improved overall well-being and life expectancy.

6. Agricultural Support:
Libyans desiring a rural lifestyle received household appliances, seeds, and livestock free of charge, facilitating their transition to farming. This initiative aimed to promote agricultural self-sufficiency and empower individuals to pursue alternative livelihoods.

7. Medical Treatment Abroad:
In cases where medical treatment was not available in Libya, the state funded the expenses, including accommodation and travel, for citizens seeking treatment abroad. This policy ensured access to specialized healthcare services for those in need.

8. Government Subsidies for Car Purchase:
The Libyan government provided financial assistance by financing 50% of the price for citizens purchasing a car. This initiative aimed to enhance mobility and improve accessibility to transportation.

9. Affordable Fuel Prices:
Under Gaddafi’s rule, the price of gasoline was remarkably low, at $0.14 per liter. This subsidized fuel cost aimed to alleviate the financial burden on citizens and facilitate affordable transportation.

10. Economic Stability:
Libya boasted no external debt and held reserves of $150 billion during Gaddafi’s regime. However, these reserves were frozen worldwide following his demise. This economic stability contributed to a sense of security and prosperity for the Libyan population.

11. Unemployment Support:
To address the issue of unemployment, the government committed to paying the average salary for graduates unable to find employment. This initiative aimed to provide a safety net for individuals during their job search and mitigate the economic challenges associated with unemployment.

12. Direct Benefits from Oil Sales:
Part of the revenue generated from oil sales in Libya was directly linked to the bank accounts of all citizens. This policy aimed to distribute the wealth derived from natural resources more equitably among the population.

13. Financial Support for New Mothers:
Mothers who gave birth received a financial benefit of $5000, providing support during the critical period after childbirth. This initiative aimed to promote the well-being of mothers and infants.

14. Affordable Bread:
The cost of bread in Libya was significantly low, with 40 loaves priced at $0.15. This subsidized price ensured that basic food necessities were affordable and accessible to all citizens.

15. The “BIG MAN PROJECT”:
Gaddafi implemented an ambitious irrigation project known as the “BIG MAN PROJECT” to combat water scarcity in the desert region. This initiative aimed to ensure water availability for agricultural purposes, contributing to food security and economic development.

While these socio-economic policies implemented during Gaddafi’s rule had positive implications for the Libyan population, it is crucial to note that this article does not intend to provide an exhaustive analysis of Gaddafi’s regime or the circumstances surrounding his death. The purpose is to highlight some of the initiatives introduced and their potential impact on the lives of the Libyan people. It is essential to recognize the complex dynamics that shaped Libya’s political landscape during that period and the diverse perspectives surrounding Gaddafi’s rule.

Was the Gaddafi’s model a threat to the free market economics foundations of the US and Europe?
Is this a sign of the demise and downfall of the USA Empire ?

While it is true that Gaddafi’s socio-economic policies presented an alternative model to the Western capitalist system, it is important to approach the question of Western countries’ motives with caution. The decision to intervene in Libya and support the removal of Gaddafi was driven by a combination of factors, including geopolitical interests, regional stability concerns, and the desire to support democratic movements during the Arab Spring.

The Western countries, especially the United States, have historically pursued their national interests and prioritized their security concerns. Gaddafi’s regime had a complicated relationship with the West, marked by periods of hostility and intermittent cooperation. It is unlikely that the sole reason for Western intervention was solely based on fears that Gaddafi’s policies would undermine the “American Dream” or the social fabric of Western societies.

The intervention in Libya was justified on humanitarian grounds, as Gaddafi’s forces were accused of committing human rights abuses and suppressing opposition movements. The international community, including Western countries, was concerned about the potential for a violent crackdown on the Libyan population and sought to prevent a humanitarian crisis.

Additionally, Gaddafi’s support for international terrorism, involvement in regional conflicts, and strained relations with Western powers played a role in the decision to intervene. The Western countries saw an opportunity to support the Libyan opposition and facilitate a transition to a more democratic and stable government.

While Gaddafi’s socio-economic policies may have been viewed as a challenge to the Western capitalist model, it is unlikely that this was the sole or primary reason for Western intervention. The decision to intervene in Libya was influenced by a complex mix of political, strategic, and humanitarian considerations, rather than a direct threat to the “American Dream” or the social fabric of Western societies.

We charge you more because we can, we control your country…:

Many Banks have told me that when talking about what used to be the more admired democracy in LATAM for the right side of the political spectrum.

Let’s analyze just data. comparing Canadian Banks with Chilean Banks since many are own by the same companies :

Canada Data :

To understand the ratio where banks in Canada make money based on the information you’ve provided, we need to compare the interest rates banks pay on deposits versus what they charge on loans. The interest rates banks offer for savings or deposits are the costs to the bank, and the rates they charge on loans represent their income. The difference between these rates is a key source of bank revenue, often referred to as the “net interest margin.”

Interest Earned on Deposits

1. Standard Interest Range: 0.65% to 1.90%
2. Smart Interest: An additional 0.50% for saving at least $200 a month (up to a balance limit of $200,000).
3. Bonus Interest: A bonus interest rate of 3.35% for the first four months on new accounts (up to a balance limit of $1,000,000).
4. Maximum Interest Potential: Up to 5.75%.

Average Personal Loan Interest Rates by Credit Score

• Poor (500 to 579): 17.49%
• Fair (580 to 669): 14.20%
• Good (670 to 739): 9.85%
• Excellent (740 to 900): 7.20%

Analysis

Banks make money on the spread between what they pay out in interest on deposits and what they earn on loans. The exact ratio can vary widely depending on the mix of loans and deposits a bank has, as well as the specific rates involved.

• On Deposits: The bank’s cost can vary from as low as 0.65% to as high as 5.75%, considering all types of interests including standard, smart, and bonus interests.
• On Loans: The bank’s income from loans can range from 7.20% (excellent credit) to 17.49% (poor credit).

Calculating the Ratio

To calculate a simple ratio of income to cost, we can consider the lowest earning rate on loans (7.20%) and the highest cost rate on deposits (5.75%).

However, a more accurate measure would consider the average loan rate and the weighted average cost of deposits, taking into account how much money is held in accounts with each interest rate. Given the vast range in loan interest rates and the potential for high deposit rates (up to 5.75%), the net interest margin can vary significantly.

Let’s proceed with a simplified calculation using the lowest loan rate (for excellent credit scores) and the highest potential deposit rate to get a conservative estimate of the bank’s interest margin.

Interest Margin Ratio=Lowest Loan RateHighest Deposit Rate=7.20%5.75%Interest Margin Ratio=Highest Deposit RateLowest Loan Rate​=5.75%7.20%​

Let’s calculate this ratio.

The simplified interest margin ratio, using the lowest loan rate (7.20%) and the highest potential deposit rate (5.75%), is approximately 1.25. This means that for every dollar the bank pays in interest on deposits, it earns about $1.25 in interest from loans to borrowers with excellent credit scores. It’s important to note that this is a very simplified analysis and actual bank profitability from interest can vary based on a multitude of factors, including the distribution of loans across different credit scores and the actual balances held at various interest rates for deposits. ​​

What when take a look at Chile :

To analyze the interest margin ratio for banks in Chile using the numbers you’ve provided, we’ll consider the interest rates banks pay (or equivalent financial metrics) and the rates they charge on loans.

Deposit Rates in Chile

From your description, it seems the focus is on the general interest environment rather than specific deposit rates offered by banks. However, the provided average value of 4.69% with a minimum of 0.32% and a maximum of 11.25% could serve as a proxy for the cost of funds or interest paid on deposits over time. For our purposes, let’s use the average rate of 4.69% as a stand-in for the cost of deposits, acknowledging this is a simplification.

Lending Rates in Chile

1. Bank Lending Rate in 2023: Averaged 16.61%.
2. Credit Card and Retail Loans: Averaged 42% over the last five years, with a high of 48% in 2023.

Analysis

For this analysis, we will compare the average cost of deposits (4.69%) to:

1. The average bank lending rate in 2023 (16.61%).
2. The average rate for credit card and retail loans over the last five years (42%).
3. The high rate for credit card and retail loans in 2023 (48%).

This will give us an understanding of the range of interest margin ratios banks in Chile might experience across different types of lending.

Let’s calculate these ratios now.Error analyzing

The calculated interest margin ratios for banks in Chile, based on the provided data, are as follows:

1. For the average bank lending rate in 2023 (16.61%) compared to the average cost of deposits (4.69%), the interest margin ratio is approximately 3.54. This means that for every dollar the bank pays in interest on deposits, it earns about $3.54 in interest from loans.
2. For the average rate for credit card and retail loans over the last five years (42%) compared to the average cost of deposits, the interest margin ratio is approximately 8.96. This indicates that for every dollar paid in deposit interest, the bank earns about $8.96 in interest from credit card and retail loans.
3. For the high rate for credit card and retail loans in 2023 (48%) compared to the average cost of deposits, the interest margin ratio is approximately 10.23. This suggests that for every dollar paid in interest on deposits, the bank earns about $10.23 in interest from these loans at the high rate.

These ratios illustrate the significant difference in potential profitability between traditional lending and credit card or retail loan products, with the latter offering substantially higher margins. ​

So how do Bankers explains the differences vs one an another ?

When comparing the interest margin ratios in Canada and Chile, several key observations stand out, reflecting differences in the banking landscapes and economic conditions of the two countries:

Canada’s Banking Environment

• The interest margin ratio calculated for Canada, using a simplified approach and conservative estimates (the lowest loan rate for excellent credit and the highest deposit rate), was approximately 1.25. This suggests a relatively narrower margin between what banks earn on loans and what they pay on deposits.
• The Canadian banking system is known for its stability and conservative lending practices. The relatively lower margin reflects a more regulated environment, where interest rates on loans and deposits are closer together, partially due to competitive pressures and a focus on maintaining financial system stability.

Chile’s Banking Environment

• In Chile, the interest margin ratios calculated were significantly higher, with ratios of 3.54 for traditional bank lending, 8.96 for the average rate on credit card and retail loans over the last five years, and 10.23 for the high rate in 2023. These higher ratios indicate a much larger spread between the interest banks earn on loans and what they pay on deposits.
• The higher ratios in Chile can be attributed to several factors, including potentially higher operational costs, risk premiums due to economic volatility, and a different regulatory environment. Credit card and retail loans, in particular, show exceptionally high interest rates, reflecting the higher risk and possibly higher default rates associated with these types of lending.